Stock Market Today: Dow, S&P 500, and Nasdaq Movements

June 17, 2024
Paul Svensen

The stock market saw significant movements today, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all experiencing fluctuations. Technology shares led the way, pushing the S&P 500 to a record high, while the Nasdaq also saw gains. Investors are closely watching central-bank decisions and Federal Reserve commentary for further market direction.

Key Takeaways

The S&P 500 and Nasdaq reached record highs, driven by technology shares.
Central-bank meetings in the U.K., Switzerland, Norway, and Australia are in focus this week.
Federal Reserve officials’ comments are being closely monitored for hints on interest-rate cuts.
U.S. markets will be closed on Wednesday for the Juneteenth holiday.

Market Performance

In afternoon trading, the S&P 500 was up about 1%, while the Nasdaq gained 1.3%. The Dow also moved upward. Chip makers like Broadcom, Micron Technology, and Super Micro Computer saw significant gains, contributing to the overall positive performance of tech shares. The S&P 500’s information technology sector was up well over 1%.

Treasury Yields and Volatility

Treasury yields rose, with the 10-year U.S. Treasury yield settling at 4.277%, up from 4.212% on Friday. The CBOE Group’s key volatility gauge, the VIX index, was marked 0.32% higher at $12.70, indicating traders expect daily swings of around 44 points, or 0.79%, for the S&P 500 over the next 30 days.

Tesla and Other Market Movers

Tesla shares rose 6% after falling on Friday following a shareholder vote to reinstate Elon Musk’s pay package. Reports suggest that officials in Shanghai have given permission for Tesla to test advanced driver-assistance software on some city streets. Other notable movers included Nvidia, Adobe, Microsoft, and Autodesk.

Global Market Overview

In Europe, France’s CAC 40 edged up, and the France-Germany 10-year bond yield spread remained elevated but slipped from Friday’s levels. In China, stock indexes ended lower despite data showing that retail sales accelerated in May. Japan’s Nikkei 225 fell 1.8%.

Upcoming Events

This week will bring a handful of notable earnings, starting with Lennar on Monday. Later, results are due from KB Home, Darden Restaurants, Kroger, and Smith & Wesson. Data on retail sales, housing starts, and U.S. business activity will also be released this week.

Analyst Predictions

Evercore ISI analyst Julian Emanuel lifted his end-of-year price target for the S&P 500 to 6,000 points, citing a combination of Fed rate cuts, improving corporate profits, and extended tech leadership as likely drivers for second-half gains. He also sees the benchmark potentially rising to as high as 7,000 points by the end of 2025.

Conclusion

As the week progresses, investors will be closely monitoring central-bank meetings and Federal Reserve commentary for further market direction. With U.S. markets closed on Wednesday for the Juneteenth holiday, the focus will shift to upcoming earnings reports and economic data releases.