QUESTION:
Give me a comprehensive US market update for this week.
RESPONSE:
This week, the U.S. market has been characterized by a mix of anticipation and subdued trading as investors and analysts await key economic data, particularly the U.S. government’s inflation report due on Friday[1][2][3][4][5]. Here’s a detailed breakdown of the various segments of the market:
Stock Market
- General Trends: The stock market has been relatively listless, with Wall Street drifting in subdued trading around last week’s records. The focus is largely on the upcoming inflation report, which is expected to influence future Federal Reserve policy decisions[6][7][8][9].
- Specific Indexes: The Dow Jones Industrial Average and the S&P 500 have shown minimal movements, each falling by about 0.1%, while the Nasdaq Composite has seen a slight uptick of 0.1%[10]. Despite a bearish tilt in the broader market, technology stocks have been an exception, showing some resilience[11].
- Notable Performances: Nvidia has been a significant player, with its stock price movements influencing the broader tech sector. The company recently rebounded from a substantial market value slump[12][13].
Cryptocurrency Market
- Bitcoin and Altcoins: Bitcoin has recently bounced above $61,000. Solana, among other cryptocurrencies, has led the market higher, indicating a positive sentiment in the digital currency space[14].
Bond Market
- Treasury Yields: The 2year Treasury yield has seen a slight increase as the market anticipates more economic data and comments from Federal Reserve officials[15][16]. This is part of a broader trend where investors are weighing comments from Fed speakers and looking ahead to crucial economic indicators[17].
Commodities
- Gold Prices: Gold prices have been muted, influenced by higher Treasury yields and a stronger U.S. dollar, which were driven by hawkish comments from Federal Reserve officials[18].
- Oil Prices: Oil prices have edged lower after a report indicated a jump in U.S. crude oil stockpiles, adding to the supply concerns[19].
Housing Market
- Mortgage and Housing Trends: The housing market appears to be in a lull, with both mortgage rates and weekly mortgage demand showing little to no change, suggesting a slow summer ahead[20]. Furthermore, economists at Bank of America have indicated that the housing market might remain stagnant until at least 2026[21].
- Home Sales: U.S. new home sales have unexpectedly plunged, with homebuilder sentiment deteriorating for the second consecutive month[22].
Overall, the U.S. market this week is marked by cautious trading and a keen focus on upcoming economic data, which could provide more clarity on the direction of monetary policy and, consequently, market movements. Investors are advised to stay tuned for the inflation report, which is poised to be a significant market mover.
References
[1] Stock market today: Wall Street drifts in subdued trading around last week’s records
Wall Street’s big focus this week is on the government’s latest inflation report Friday.
[2] Stock market today: Wall Street drifts in subdued trading around last week’s records
Wall Street’s big focus this week will be on the government’s latest inflation report Friday.
[3] Stock market today: Wall Street barely budges ahead of inflation report
The stock market has been listless throughout the week ahead the next influential inflation report on Friday.
[4] Stock market today: Wall Street barely budges ahead of inflation report
Markets’ main focus this week is on a U.S. government inflation report due Friday.
[5] Stock market today: World shares are mostly lower ahead of a key US inflation report
The markets’ big focus this week is on a U.S. government inflation report due Friday.
[6] Stock market today: Wall Street drifts in subdued trading around last week’s records
Wall Street’s big focus this week is on the government’s latest inflation report Friday.
[7] Stock market today: Wall Street barely budges ahead of inflation report
The stock market has been listless throughout the week ahead the next influential inflation report on Friday.
[8] Stock market today: Wall Street barely budges ahead of inflation report
Markets’ main focus this week is on a U.S. government inflation report due Friday.
[9] Stock market today: World shares are mostly lower ahead of a key US inflation report
The markets’ big focus this week is on a U.S. government inflation report due Friday.
[10] Stock Market Today: Dow looks for momentum as Tesla stock drives Nasdaq [MarketWatch]
U.S. stocks were mixed in late-morning trading on Wednesday, with the Nasdaq Composite up 0.1% but the Dow Jones Industrial Average and the S&P 500 were each falling 0.1%, according to FactSet data. https://www.marketwatch.com/livecoverage/stock-market-today-dow-futures-steady-as-tech-leads-the-gains?
[11] Stock Market Today: Dow ends down 300 points; S&P 500, Nasdaq snap 3-day losing streak [MarketWatch]
The U.S. stock market is “tilted bearishly,” and nothing is working outside of the technology stocks, said José Torres, senior economist at Interactive Brokers. https://www.marketwatch.com/livecoverage/stock-market-today-dow-futures-steady-as-nvidia-shares-dip
[12] CNBC Daily Open: Nvidia rises from $500 billion slump [CNBC]
The upcoming weeks will reveal whether the current trends persist or evolve into a broader market pullback.” https://www.cnbc.com/2024/06/26/cnbc-daily-open-nvidia-rises-from-500-billion-slump.html
[13] How Businesses Can Figure Out The ROI On AI [Forbes]
The last week has been a series of huge increases and moderate decreases on the stock market, mostly thanks to Nvidia. https://www.forbes.com/sites/cfo/2024/06/25/how-businesses-can-figure-out-the-roi-on-ai
[14] Bitcoin bounces above $61,000, Solana leads cryptocurrencies higher [CNBC]
However, he added, “I doubt we see the actual impact of this news for some time, and my money is on us heading back towards the type of market action we saw earlier this week.” https://www.cnbc.com/2024/06/25/bitcoin-bounces-above-61000-solana-leads-cryptocurrencies-higher.html
[15] 2-year Treasury yield inches higher as investors await key data [CNBC]
Fed officials are also set to make remarks on Tuesday and throughout the week, which investors will be scanning for clues about the central bank’s expectations for the U.S. economy and monetary policy. https://www.cnbc.com/2024/06/25/us-treasury-yields-as-investors-await-key-data.html
[16] 2-year Treasury yield inches higher as investors await key data [CNBC]
Investors looked ahead to several economic data points due this week as well as comments from Federal Reserve officials. https://www.cnbc.com/2024/06/25/us-treasury-yields-as-investors-await-key-data.html
[17] Treasury yields climb as investors weigh comments from Fed speakers [CNBC]
Investors also looked ahead to key economic data due later in the week, including the personal consumption expenditure price index on Friday. https://www.cnbc.com/2024/06/26/us-treasury-yields-as-investors-weigh-fed-speaker-comments.html
[18] Gold prices muted with U.S. inflation data in focus [CNBC]
Treasury yields and a firmer U.S. dollar overnight on the back of hawkish Fed comments have driven some weakness in gold prices this morning, as the call for a quicker policy easing failed to find much validation from policymakers,” said IG market strategist Yeap Jun Rong. https://www.cnbc.com/2024/06/26/gold-prices-muted-with-us-inflation-data-in-focus.html
[19] Oil edges lower after industry group reports jump in U.S. stockpiles [CNBC]
The American Petroleum Institute reported U.S. crude oil stocks rose by 914,000 barrels in the week ended June 21, according to market sources briefed on the data. https://www.cnbc.com/2024/06/26/oil-edges-lower-after-industry-group-reports-jump-in-us-stockpiles.html
[20] Both mortgage rates and weekly mortgage demand are stuck in place, suggesting a slow summer housing market [CNBC]
Total mortgage application volume was essentially flat last week, up just 0.8% from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. https://www.cnbc.com/2024/06/26/mortgage-rates-and-demand-suggests-a-slow-summer-housing-market.html
[21] The housing market is ‘stuck’ until at least 2026, Bank of America warns [CNN]
Economists at Bank of America warned this week that the US housing market is “stuck and we are not convinced it will become unstuck” until 2026 — or later. https://us.cnn.com/2024/06/27/economy/housing-market-prices-inflation/index.html
[22] US new home sales plunged unexpectedly last month [CNN]
US homebuilder sentiment soured in May for the second month in a row, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index out last week. https://us.cnn.com/2024/06/26/economy/us-new-home-sales-may/index.html
