Apple experiences a new record high as AI strategies take center stage.
As significant dates approach in the middle of the week, American stock markets can't decide on a direction. While the Dow declines, Nasdaq and S&P-500 hit new records. Papers from Apple and General Motors are desired.
Lower bond yields before "Super Wednesday" on Wall Street led to some purchasing interest. However, individual stocks like Apple or Boeing dominated the headlines. All eyes were on the total market, as new US inflation data would be released first and the US Federal Reserve would state its position on interest rates later the same day. Following the recently much better-than-expected US labor market report, the expectation that the Fed would sound more aggressive prevailed in the market. This would be yet another deterrent for interest rate cut expectations.
The Dow Jones Index dropped 0.3% to 38,747 points, while S&P-500 and Nasdaq-Composite rose 0.3% and 0.9% respectively and set new records. "The markets are nearly certain that there will be no interest rate cut this week," said Matt Britzman, an analyst at Hargreaves Lansdown. Although traders still hope for two interest rate cuts by the end of the year, this speculation is becoming less stable. The probability of a rate cut for September is currently only estimated at around 50%.
Downward spiral continues at Boeing
Among individual stocks, Apple had a late start but ultimately reached a new all-time high, with the stock price increasing by 7.3%. It's market capitalization also surpassed the $3 billion mark again. The tech giant didn't meet expectations at its developer conference, but their AI initiative and their cooperation with OpenAI were well-received by analysts.
Boeing, on the other hand, dropped 2.4%. The US aircraft manufacturer only received four aircraft orders in May. For the second month in a row, there was no order for the 737 MAX.
General Motors dropped 1.3%. The automaker announced a $6 billion share buyback program. The company's forecast for electric vehicle sales was also lowered, which weighed on the stock. This was also because GM predicted the current quarter would perform better than the last.
Shopify climbed 1.3% after a positive analyst statement. JP Morgan placed the Canadian retailer's stock into its "Overweight" coverage. CoreCivic plummeted 19.8%. The prison operator ended its partnership with the operator of detention centers in Dilley.
Affirm rose 11% as payment services for Apple Pay users were expected to be available soon. Calavo Growers gained 8.2%, as the company had moved into profit during the second quarter.
On the bond market, rates decreased - supported by an auction of $39 billion worth of 10-year US government bonds. In trading, there was talk of strong demand, which then also affected the primary market. The yield of the bonds sold was clearly below market expectations.
The dollar was strengthened by expectations of hawkish statements from the US Federal Reserve. The dollar index rose 0.1 percent.
At the oil market, prices increased - driven by the assumption of strong fuel demand during the summer vacation season. Particularly, there was discussion of high demand for jet fuel. Furthermore, OPEC confirmed its expectation of rising demand in 2024 and 2025. One reason for the forecast is the economic growth in China.
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In the midst of anticipation for influential events on Wall Street, traders closely monitor the performance of notable companies like Apple, whose share prices hit a new record high. Amidst this market fervor, the Dow Jones Index registers a slight decline, while the Dow Jones Industrial Average, primarily influenced by Apple's surge, continues to dominate discussions in share trading.
