U.S. stocks trade flat to end the week
Jun 22, 2024
New York [USA], June 22: U.S. stocks ended flat and mixed on Friday, upon better-than-expected U.S. purchasing managers' index (PMI) in June and pullback of Nvidia shares for the second day.
The Dow Jones Industrial Average rose 15.57 points, or 0.04 percent, to 39,150.33. The S&P 500 sank 8.55 points, or 0.16 percent, to 5,464.62. The Nasdaq Composite Index shed 32.23 points, or 0.18 percent, to 17,689.36.
Six of the 11 primary S&P 500 sectors ended in green, with consumer discretionary and communication services leading the gainers by going up 1.02 percent and 0.66 percent, respectively. Meanwhile, technology and energy led the laggards by dropping 0.84 percent and 0.68 percent, respectively.
The U.S. PMIs broadly beat Wall Street forecasts in June according to the data on Friday. The S&P Global Manufacturing PMI rose to 51.7 from the previous month's 51.3, defying expectations of a decline to 51.0. The Services component also increased, climbing to 55.1, its highest level since May 2022, up from 54.8 and exceeding the forecast of 53.7.
On the downside, the U.S. Existing Home Sales eased to 4.11 million units in May, a 0.7 percent slip from April's 4.14 million, but still better than the forecasted decline to 4.10 million. Despite the slightly better-than-expected PMI figures, markets continue to anticipate a September rate cut from the Federal Reserve.
According to the CME's FedWatch Tool, rate traders are pricing in around 65 percent odds of at least a quarter-point rate cut by the meeting of the Federal Open Market Committee on Sept. 18.
On the corporate front, Nvidia shares declined 3.22 percent on Friday, following a drop of 3.54 percent in the previous session.
"Technology stocks continue to be in the spotlight," said Emily Roland, co-chief investment strategist at John Hancock Investment Management. "I can't remember a time when one single stock ... has been so influential on the market, and that's really been a key driver of the market action as of late."
Source: Xinhua
