US stocks end up as Fed, CPI loom large next week
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[June 07, 2023] By
Sruthi Shankar, Shristi Achar A and David Carnevali
(Reuters) - U.S. stocks closed up on Tuesday, helped by some advances in
economically sensitive sectors, as investors awaited inflation data and
the Federal Reserve's policy meet next week.
Inflation data is expected to show consumer prices cooled slightly on a
month-over-month basis in May but core prices are likely to have
remained elevated, and the Fed is widely expected to hold interest
rates.
Major indexes wavered as investors took a breather after pushing the S&P
500 up almost 20% from its October 2022 lows, boosted by gains in
megacap stocks, a stronger-than-expected earnings season and hopes that
the U.S. central bank is nearing the end of its interest rate-hike
cycle.
The Dow Jones Industrial Average rose 10.42 points, or 0.03%, to
33,573.28, the S&P 500 gained 10.06 points, or 0.24%, to 4,283.85 and
the Nasdaq Composite added 46.99 points, or 0.36%, to 13,276.42.
"It looks like investors are gaining a little optimism," said Cresset
Capital CIO Jack Ablin.
"The narrowness in the market where everyone was focused on the top
seven names or so is starting to dissipate a little bit and that's good
news."
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Financials rose 1.33% to lead gains among the 11 major S&P 500 sectors,
while the KBW regional banking index jumped 5.41%. The Russell 2000
index of small-cap companies added 2.69%.
Recent economic data and dovish remarks from Fed officials have raised
the odds of the Fed holding interest rates at its June 13-14 meeting.
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Traders work on the floor of the New
York Stock Exchange (NYSE) in New York City, U.S., May 30, 2023.
REUTERS/Brendan McDermid
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Fed fund futures indicate traders have priced in a near 80% chance
that the central bank will hold interest rates in the 5%-5.25%
range, according to CMEGroup's Fedwatch tool. However, they see 50%
odds of another 25-basis-point rate hike in July.
Coinbase Global plunged 12.09% after the U.S. Securities and
Exchange Commission sued the crypto exchange, accusing it of
illegally operating without having first registered with the
regulator.
Apple Inc extended losses to slip 0.21%, a day after the iPhone
maker unveiled a costly augmented-reality headset called the Vision
Pro, barging into a market dominated by Meta.
Advanced Micro Devices rose 5.34% after Piper Sandler raised the
price target on the stock to $150, the second highest on Wall
Street, as per Refinitiv data.
Advancing issues outnumbered declining ones on the NYSE by a
3.47-to-1 ratio; on Nasdaq, a 2.59-to-1 ratio favored advancers.
The S&P 500 posted 17 new 52-week highs and 5 new lows; the Nasdaq
Composite recorded 98 new highs and 69 new lows.
(Reporting by Sruthi Shankar and Shristi Achar A in Bengaluru;
Editing by Vinay Dwivedi and Deepa Babington)
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