US stock markets suffer from weak decision-making
Investors are keeping quiet before the publication of important Inflation data on Friday. Meanwhile, Amazon's stock continues to climb, making it the fifth company overall to reach a magical market value.
The US markets closed with moderate gains on Wednesday. Traders held back in anticipation of inflation data that could indicate the timing of a rate hike from the US Federal Reserve. The Dow Jones Industrial Average gained slightly, ending the trading day at 39,127 points. The technology-heavy Nasdaq dropped 0.5 percent to 17,805 points. The broad-based S&P 500 added 0.2 percent to 5477 levels.
The market's indecisiveness was evident as the Dow and the Nasdax moved in opposite directions for the fourth day in a row, according to market strategist Ryan Detrick of the Carson Group during the volatile trading day. Chief Economist Brian Jacobsen of Annex Wealth Management predicted this trend would continue "until there's a catalyst." This catalyst could be the PCE Price Index, which is the preferred inflation measure by the US Federal Reserve. At this point, a rate hike from the Fed is not expected until at least September.
Is Bosch Making an Offer?
FedEx surprised investors with positive forecasts, causing its stocks to surge 15.5 percent. The shipping company expects earnings per share of $20 to $22 for 2025. Brokerage firm Baird anticipates a moderately improved freight demand for FedEx.
Investors in electric vehicle maker Rivian were euphoric about the collaboration with Volkswagen. The stocks jumped over 23 percent. The software for new electric vehicles, set to hit the market starting in 2028, will come from a joint venture between the two automakers. Volkswagen is reportedly investing $5 billion in the project.
Amazon in the Stock Market Olympics
Whirlpool stocks surged more than 17 percent after the news agency Reuters learned of the plans from several informed sources. Robert Bosch is reportedly considering making an offer for the US competitor. Bosch has already consulted with advisors, one insider said, but it's not clear if an actual offer will be made.
During the trading day, Amazon.com became the fifth US company to reach a market value of two trillion dollars. Investors are reportedly pouring money into tech companies due to optimism regarding Artificial Intelligence (AI) and the hope for interest rate cuts. The stock rose 3.9 percent in New York. Amazon now belongs to the same exclusive club as the tech heavyweights Microsoft, Apple, Nvidia, and Alphabet.
The anticipation surrounding the PCE Price Index, as the preferred inflation measure by the US Federal Reserve, could potentially impact decisions made by companies like Nvidia on Wall Street, given that inflation and interest rates are closely linked to the economy. Meanwhile, Amazon's impressive market value of two trillion dollars continues to attract investor interest, further fueling the stock market's love for tech companies with strong AI capabilities.
