S&P 500 closes lower after record high, weighed by chips stocks, economic data
Kroger reaffirms FY forecasts amid consumer spending pressure
Nasdaq ends seven-session streak of record closing highs
Indexes mixed: Dow up 0.77%, S&P down 0.25%, Nasdaq down 0.79%
Updates with more closing data
By Echo Wang
June 20 (Reuters) -The S&P 500 and Nasdaq closed loweron Thursday, as market bellwether Nvidia retreated from earlier gains, while investors evaluated recent economic data and commentary from Federal Reserve officials to determine the timing of interest-rate cuts this year.
Earlier, the S&P 500 hit the crucial 5,500-point mark for the first time ever, a year-end target multiple brokerages had forecast.
Nasdaq ended a seven-session streak of record closing highs.
Shares of Nvidia dropped 3.54% after rising earlier in the session. The chipmaker dethroned Microsoft on Tuesday to become the most valuable public company.
Dell DELL.N and Super Micro Computer SMCI.O also declined 0.42% and 0.26% respectively afteran initial increase, following news that they received server orders for Elon Musk's AI startup.
The number of Americans filing new claims for unemployment benefits declined last week, but the latest data showed that the overall number of people on benefits rolls reached the highest level since January, indicating that the U.S. job market continues to cool.
Another set of data showed U.S. single-family homebuilding fell in May amid continued high mortgage rates.
“The news that we got today was just another negative weakness in the economy”, said Tom Martin, senior portfolio manager at Globalt in Atlanta.
“In the employment report, you're getting those (unemployment) claims that are not terrible, but it's.. getting into a territory that's not low necessarily anymore."
Energy .SPNY and utilities .SPLRCU were biggest gainers among the 11 S&P 500 sector indexes, up 1.86% and 0.89% respectively, while technology .SPLRCT led the decline.
“There's still a lot of noise in there about supply and demand still isn't really that strong. But there's just been.. a willingness to sort of come back to that area where we're going to be needing energy going forward,” said Martin.
Meanwhile, Minneapolis Fed President Neel Kashkari said it would take a year or two to get inflation back to 2%, as wage growth might still be too high, spurring worries of interest rates staying elevated for longer.
Money markets currently see a 58% chance of a 25-basis-point rate cut by the U.S. central bank in September, according to LSEG's FedWatch data.
The Dow Jones Industrial Average .DJI rose 299.90 points, or 0.77%, to 39,134.76, the S&P 500 .SPX lost 13.86 points, or 0.25%, to 5,473.17 and the Nasdaq Composite .IXIC lost 140.64 points, or 0.79%, to 17,721.59.
Kroger KR.N fell 3.27% afterstriking a cautious tone on near-term consumer spending, as it reaffirmed its full-year same-store sales and profit forecasts despite topping first-quarter estimates.
Trump Media & Technology Group DJT.O tumbled 14.56%on potential equity dilution after the U.S. Securities and Exchange Commission declared effective the company's filing for a resale of certain shares and warrants, giving it about $247 million in proceeds.
Declining issues outnumbered advancers by a 1.03-to-1 ratio on the NYSE. There were 248 new highs and 118 new lows on the NYSE.
The S&P 500 posted 31 new 52-week highs and 6 new lows while the Nasdaq Composite recorded 39 new highs and 217 new lows.
Volume on U.S. exchanges was 11.98 billion shares, compared with the 13.51 billion average for the full session over the last 20 trading days.
Reporting by Echo Wang in New York; Additional reporting by Shubham Batra and Ankika Biswas in Bengaluru; Editing by Sriraj Kalluvila, Shounak Dasgupta, Pooja Desai and Aurora Ellis
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
