Wall Street Today | Slow Day But Steady Sector Gains
The market opened soft and traded lower on Monday, but investors found positives in some sectors, such as Bitcoin, SPAC mergers, and general meme stocks.
RECAP
On preliminary closing data, the $S&P 500 Index pulled back 0.31%. The $Dow Jones Industrial Average fell 0.41%, and the $Nasdaq Composite Index fell 0.27%.
Treasuries climbed, and the $U.S. 10-Year Treasury Notes yield rose 1.17% to 4.24.
The market hit all-time highs last week after FOMC said rates would not change, and shed light on this year's rate cuts. The $S&P 500 Index climbed 2.29% last week and added three all-time high closes. The $Dow Jones Industrial Average climbed 2.25%, and the $Nasdaq Composite Index fell 2.99% last week.
MACRO
FedSpeak Points to Risks Pairing Rate Cut Possibilities
The Federal Reserve is weighing the risks of too-high inflation and a loosening labor market more evenly today, according to Federal Reserve Gov. Lisa Cook, suggesting that interest rates may come down soon.
In a lecture at Harvard University on Monday morning, Cook said it isn't time to cut yet, but the balance between the Fed's inflation and employment goals is more balanced today. Cook is a voting member of the Federal Open Market Committee, the Fed's policymaking arm, and has served on the Fed's Board of Governors since May 2022.
"Following a period of unusually high inflation and rapid monetary-policy tightening, inflation has fallen considerably while the labor market has remained strong," Cook said. Chicago Federal Reserve President Austan Goolsbee also spoke Monday about his new expectation of three quarter-point interest rate cuts this year.
In an interview on Yahoo Finance, Goolsbee wouldn't discuss when the Fed might start cutting rates. He said he didn't want to discuss individual meetings. "I don't like ever tying our hands or signaling that we've made up our minds," he said.
SECTORS
Among tracked sectors on moomoo, semiconductors are up 0.95%. Recently publically listed $Astera Labs(ALAB.US$ climbed 20%, while $Micron Technology(MU.US$ grew 7%.
Bitcoin and related stocks are climbing as the price nearly retook $70k, and miners like $CleanSpark and coin traders like $Coinbase rose.
Oil Futures Rise
Oil futures advanced on Monday as investors monitored escalating geopolitical tensions in the Middle East and Russia's war in Ukraine, while output cuts by Moscow to meet OPEC+ targets and a decline in the U.S. rig count raised concerns over a potential tightening of crude supply.
West Texas Intermediate crude $Crude Oil Futures(JUN4)(CLmain.US$ rose $1.32, or 1.6%, to settle at $81.95 a barrel on the New York Mercantile Exchange. The contract snapped a three-session losing streak and scored its largest one-day dollar and percentage gain since March 18, according to Dow Jones Market Data. May Brent crude, the global benchmark, was up $1.32, or 1.6%, to end at $86.75 a barrel on ICE Futures Europe.
Oil futures rose on Monday, with U.S. crude settling right below the $82-a-barrel level after finishing last week with three consecutive sessions of declines.
COMPANIES
Reddit Climbs Following Public Listing Week
$Reddit(RDDT.US$, after it recent SPAC public listing, climbed 20% intraday on fresh optimism.
Trumps Truth Social To Trade In DWACs Place
$Digital World Acquisition Corp(DWAC.US$ are up about 40% in intraday trading, rebounding following Friday's slump after investors voted to approve its deal to take Trump's Truth Social public.
Super Micro Climbs On JPM Upgrade
The biggest gainer in the S&P 500 was $Super Micro Computer, climbing 8% and continuing a three-day gain on news that JPMorgan believes the price can go higher.
Being CEO Departure Turns Stock Positive
$Boeing climbed 1.32% after CEO Calhoun announced he would step down.
Source: Bloomberg, Dow Jones, CNBC, Reuters
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