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The New York stock market rose this week despite caution ahead of the U.S. inflation index and the Federal Reserve's interest rate decision.
On the first day of Nvidia's stock split, the S&P 500 index and Nasdaq index again broke their all-time highs.
On the 10th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed trading at 38,868.04, up 69.05 points (0.18%) from the previous day.
The Standard & Poor's (S&P) 500 index closed at 5,360.79, up 13.80 points (0.26%) from the previous day, and the Nasdaq index closed at 17,192.53, up 59.40 points (0.35%) from the previous day.
The S&P 500 index and Nasdaq index closed at record highs again on this day.
Market participants took note this week of the May Consumer Price Index (CPI) and the Federal Open Market Committee (FOMC) meeting.
In addition, the stock price trend of NVIDIA, which led the trend of artificial intelligence (AI) technology stocks, on the first day of the stock split also attracted attention.
Nvidia rose by 0.7% on this day with a 10-to-1 stock split.
Investment sentiment for technology stocks was generally positive.
Metaplatforms (Facebook) rose nearly 2%, and Alphabet A and Microsoft also showed support.
However, Apple fell by 1.9%. Apple held its annual developer conference, 'Worldwide Developers Conference (WWDC) 24', for a week from this day, but its stock price fell even though it unveiled its own AI function, 'Apple Intelligence', for the first time on the first day.
Tesla's stock price fell by 2%. Norwegian Bank Investment Management (NBIM), which manages Norway's sovereign wealth fund, announced in a statement on the 8th that it would vote against the CEO compensation plan that is on the agenda for Tesla's general shareholders' meeting to be held on the 13th.
This week, investors' attention is also focused on the U.S. price index and interest rate decisions.
According to expert forecasts compiled by the Wall Street Journal (WSJ), the CPI in May was expected to rise by 3.4% and the core CPI by 3.5% compared to the previous year.
This is not much of a slowdown compared to the 3.4% increase in CPI from the previous month and the 3.6% increase in core CPI in the previous month.
The financial market is accepting the Fed's decision to freeze interest rates at this meeting as a fait accompli by more than 99%.
In addition, according to the dot plot, market participants predicted that the existing prediction of three interest rate cuts this year would be reduced to two or less.
Last week, the US employment indicator came out solid, adding weight to the diagnosis that the Federal Reserve's interest rate cut is not easy.
Even the European Central Bank (ECB), which took the first step in lowering interest rates before the Federal Reserve, drew a line at the possibility of successive interest rate cuts in the future.
According to CME Group's FedWatch tool, the probability of a 25bp cut by the U.S. Federal Reserve in September was 45.0%, and the probability of a freeze in September was 51.0%.
Looking at stocks other than technology stocks, the stock price of GameStop, a leading meme stock, plummeted around 12%.
Southwest Airlines stock price soared by 7%. Elliott Investment Management, a global activist investor, reportedly proposed in a letter to Southwest's board of directors after investing about $2 billion that it would raise its stock price by 77% within a year, including a comprehensive review of its business strategy.
Shares of AMD, an American semiconductor manufacturer, fell around 4%. Morgan Stanley downgraded its investment opinion on AMD from 'overweight' to 'neutral' and assessed that the possibility of an upward revision is "limited" even if performance recovers in the core business.
Sector indices were mixed. Indexes related to consumer staples, finance, and materials fell, while indices related to energy, health, industry, real estate, technology, and communication rose.
The Chicago Board Options Exchange (CBOE) volatility index (VIX) showed 12.74, up 0.52 points (4.26%) from the previous day.
Cryptocurrency leader Bitcoin (BTC) has been trading in the $69,000 range over the past 24 hours.
As of 6:21 a.m. on the 11th, Korean time, the price of Bitcoin, the No. 1 cryptocurrency in market capitalization, is recording $69,592, down 0.15% from 24 hours ago based on CoinMarketCap.
Michaël van de Poppe, a cryptocurrency analyst with about 719,000 X followers, said through “It would be huge if it breaks through, but it is common to take a conservative approach in the week leading up to the US CPI,” he said.
