 "US stock market: Another day of record highs for Nasdaq, S&P 500 as Nvidia rides high on the AI wave")
US stock indices put up another stellar performance on Tuesday. The S&P 500 rose 0.3 per cent or 13.80 points to close at 5,487.03, marking its 31st all-time high of the year. The Nasdaq composite edged up less than 0.1 per cent, adding 5.21 points to reach 17,862.23, its seventh straight record close. The Dow Jones Industrial Average added 0.1 per cent or 56.76 points to 38,834.86.
Stock gains were supported by easing yields in the bond market. Treasury yields dropped after a report indicated that US retail sales grew last month but fell short of economists’ expectations.
Market movers
Nvidia shone brightly once more, increasing 3.5 per cent. The tech giant surpassed other major tech giants to become the world’s most valuable publicly traded company, a surge that contributed to the Nasdaq’s seventh consecutive record close.
Among Tuesday’s winners was furniture maker La-Z-Boy, which soared 19.4 per cent following stronger-than-expected quarterly profit and revenue.
Silk Road Medical surged 24 per cent after Boston Scientific agreed to purchase the medical device company in a cash deal valued at approximately $1.26 billion, including its cash holdings.
US retail sales data
The stock market records occurred as traders assessed a US retail sales report for May that fell short of expectations. Notably, gasoline stations saw the largest monthly decline in sales, down 2.2 per cent, while sales at furniture and home furnishing stores also dipped from April.
Despite the disappointing consumer demand data, investors remain hopeful that a slowing economy might prompt the Federal Reserve to ease interest rates.
Following the release of the retail sales data, traders increased their bets that the Federal Reserve will cut rates at least twice this year, according to CME Group data. Federal Reserve officials are currently anticipating one or two rate cuts in 2024.
Impact Shorts
More ShortsBond market dynamics
The yield on the 10-year Treasury fell to 4.21 per cent from 4.29 per cent late Monday. The two-year yield, which is more sensitive to Fed expectations, declined to 4.70 per cent from 4.77 per cent.
With inputs from agencies
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