Wall Street's road to recuperation.
The US stock market experienced some uplift at the end of the week after a heavy loss the previous day. The S&P 500 climbed by 0.70% to 5305 points while the Nasdaq surged 1.1% to 16,921 points. However, the Dow Jones Industrial Index remained stagnant, rising 0.02% to 39,070 points. Initially, the markets had looked mournful due to comments from Federal Reserve officials and unexpectedly high inflation rates. Now, US central bank officials are considering an interest rate cut in November instead of September.
With good quarterly results mostly behind us, investors are now more concerned with the Federal Reserve and economic developments. Everywhere you look, bankers and economists are looking over their shoulders. Investment expert Kim Forrest from Bokeh Capital Partners said that investors have shifted their attention from company reports to the Federal Reserve and the economy. The US Department of Commerce reported an increase of 0.7% in durable goods between April and May. The University of Michigan also announced a higher-than-predicted result of 69.1 for the final consumer sentiment index in May, up from the already high 67.5. The dollar index decreased by 0.3% to 104.70. The oil market saw a rise in North Sea Brent crude prices of approximately 0.9%, amounting to 82.13 dollars per barrel.
Workday, a company that sells HR software, saw a 15% plunge in its share price as it anticipated lower customer growth and reduced its revenue forecast for fiscal 2025. Barclays and Jefferies, among other brokers, also revised their price targets for the stock. Deckers Outdoor, meanwhile, saw its shares gain over 14%, marking the first time they were worth more than 1000 dollars. This footwear company was a hit among Americans due to their love for UGG boots and Hoka running shoes. Citi Research analyst Paul Lejuez remarked, "Fiscal 2024 was an incredible year for Deckers. Its two major brands performed remarkably well, continuously attracting new customers." Since the beginning of last year, Deckers has seen an increase of around 35%. Nike's share price, however, fell by about 15% this year.
Intuit suffered a loss of more than 8% because it didn't meet investor expectations in its outlook for the third quarter. In contrast, Ross Stores fared well with better-than-anticipated quarterly results and a more optimistic forecast. Ross Stores' shares soared over 10%.
The cryptocurrency market also made headlines. The Securities and Exchange Commission (SEC) surprisingly approved applications for multiple trading platforms to create ETFs (Exchange Traded Funds) tied to ether, the second-largest cyber currency after Bitcoin. This could potentially open the gates for ether spot ETF trading before the year's end. ETH shed around two percent to settle at 3675 dollars but has gained around 23% since early May.
To catch up on all the day's other stock market developments, check out this link.
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Despite the positive shifts in other major indices, the Dow Jones Industrial Index remained relatively unmoved, only seeing a minimal increase of 0.02%. This stagnation in share prices could potentially impact share trading activities on Wall Street. With the Federal Reserve considering an interest rate cut in November, investors might shift their focus towards opportunities within the Dow Jones portfolio, leading to increased share trading activities. The influence of the Dow Jones index on Wall Street's share trading cannot be underestimated, as its component companies significantly influence the broader stock market landscape.
Source: www.ntv.de
