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All three major indices rose as the New York stock market continued its trend led by artificial intelligence (AI).
In particular, the Standard & Poor's (S&P) 500 Index and Nasdaq Index both broke their all-time highs.
On the 17th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average ended trading at 38,778.10, up 188.94 points (0.49%) from the previous day.
The Standard & Poor's (S&P) 500 index closed at 5,473.23, up 41.63 points (0.77%) from the previous day, and the Nasdaq index closed at 17,857.02, up 168.14 points (0.95%) from the previous day.
The stock index is showing support due to the market's interest rate expectations and optimism about the economy, as well as expectations for an AI-related rally.
In particular, the actions of large AI-related technology stocks had a positive impact on the stock index.
Apple rose by 1.9% on this day, and Microsoft also rose by 1%. Alphabet A, Amazon, and Metaplatforms (Facebook) also rose slightly.
Tesla stock price rose by 5%. Stock prices rose as it was reported that the compensation plan for CEO Elon Musk was approved in a vote by shareholders.
Meanwhile, Nvidia fell 0.6%.
Nvidia lowered its level after hitting an all-time high of $133.73 during the day.
The market continued to point out that Nvidia was in overbought territory, but expectations continued.
Nvidia's stock price showed a solid performance as CEO Jensen Huang said that humanoid robot technology will make groundbreaking progress within the next two to three years.
Optimism in the stock market also supported the stock index.
On Wall Street, there were continued claims that the S&P 500 index was likely to exceed the 6,000 mark by the end of this year.
Julien Emmanuel, chief strategist at Evercore ISI, raised his year-end S&P 500 index forecast from 4,750 to 6,000.
He predicted that if a bull market unfolds, the S&P 500 index could rise to a high of 6,500 by the end of the year.
According to the Federal Reserve Bank of New York, the Empire State Manufacturing Index in June recorded -6.0, up 9.6 points from -15.6 the previous month.
The manufacturing index has been negative for 7 months.
However, the general business environment index, which shows economic expectations six months from now, was the highest in two years.
Market participants are also expected to pay attention to the interest rate decisions of several central banks while the Federal Reserve's (Fed) interest rate cut path remains open.
The Federal Reserve interest rate cut was expected to occur in September, if possible, or in December at the latest.
“If everything goes as expected, one rate cut by the end of the year would be appropriate,” Philadelphia Fed President Patrick Harker said in a speech at the conference. “I think it’s quite possible,” he said.
According to CME Group's FedWatch tool, the probability of a 25bp cut by the U.S. Federal Reserve in September has increased to 56.7%. The probability of freezing in September was 38.5%. In addition, the financial market reflected the probability of an interest rate cut in November at about 50.4%, and the possibility of a second interest rate cut in December was reflected the highest at 43.1%.
The fact that political uncertainty in France has eased has also helped market sentiment.
As for industry indices, only health, real estate, and utilities fell. In addition, indices related to consumer staples, energy, finance, industry, materials, technology, and communication rose.
The Chicago Board Options Exchange (CBOE) volatility index (VIX) showed 12.75, up 0.09 points (0.71%) from the previous day.
While the S&P 500 and Nasdaq closed at record highs, Bitcoin (BTC) has been slowly declining over the past few days.
Cointelegraph diagnosed that this is because the supply of Bitcoin exceeds demand.
In fact, according to Farside Investor data, funds have flowed out of the Bitcoin spot ETF for four out of five days since June 10th.
However, analysts pointed out that long-term investors are not panicking and are continuing to buy.
The number of wallets holding more than 10 BTC was 16.6 million, the highest since June 2022, according to market intelligence firm Santiment.
Cointelegraph expressed optimism, saying, "Bitcoin is weak in the short term, but it is stuck in a range and buying forces are likely to appear at the support line. The longer it stays in the range, the greater the force needed for the price to break through the range." It gave strength.
According to CoinMarketCap, a global cryptocurrency price relay site, as of 7:47 am on June 18 (Korean time), the BTC price is recording $66,560, down 0.10% from 24 hours ago.
