July 14, 2024

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Wall Street closed lower despite the S&P 500 hitting a new record

Wall Street closed lower despite the S&P 500 hitting a new record

In this context, the Dow Jones Industrial Average ended at 39,134.76 points, up 0.77%, and the Standard & Poor’s 500 index closed at 5,473.17 points, losing 0.25%. The Nasdaq Composite Index fell by 0.79% to 17,721.59 points.

The platform owner staggered

The technology sector, and Nvidia in particular, They remained the focus of attention Thursday in the early stages of negotiationsafter the chip maker became the world’s most valuable company earlier this week.

Nvidia has been a major beneficiary of growing enthusiasm around AI applications and has overtaken Microsoft and Apple in market valuation.

But its numbers have declined so far, as it closed with a loss of 3.5%. The massive company has gained 174% so far this year.

Elsewhere, Accenture shares jumped more than 7% after the information technology (IT) services provider forecast annual revenue growth above estimates as rising adoption of artificial intelligence offsets sluggish growth in business spending.

Shares of Trump Media and Technology Group fell 15%, adding to Tuesday’s 10% loss, after a ruling by the US Securities and Exchange Commission that allows investors in the company’s derivatives, known as warrants, to exchange their holdings for company shares.

Winnebago shares fell 3.5% after the recreational vehicle maker’s fiscal third-quarter earnings disappointed and higher interest rates deterred buyers.

Housing construction collapsed in May

Economic data released Thursday pointed to a slowdown in the economy, with initial jobless claims reaching 238,000, higher than the expected 235,000, while home construction starts fell 5.5% in May.

Fed officials won’t stop talking

A number of Fed officials have expressed caution about expecting interest rate cuts too soon, seeking more evidence that inflation is under control before the central bank agrees to ease monetary policy.

Minneapolis Fed President Neel Kashkari said it could take up to two years to bring US inflation back to the Fed’s medium-term target.

Kashkari, who was speaking at the Michigan Bankers Association’s annual conference earlier Thursday, said wage growth was too high to bring inflation back to the 2% target at this time.

Oil is on the rise

Crude oil prices rose on Thursday ahead of the release of official US inventory data.

Figures released Tuesday by the American Petroleum Institute showed that U.S. crude oil inventories rose by just over 2 million barrels in the week ending June 14, indicating weak demand even during the important summer driving season.

The Energy Information Administration will release the official numbers one day later than usual, due to a holiday on Wednesday, June 19.

The Bank of England in line with the Federal Reserve

Although there are possibilities that there will be cuts in 2024, the Bank of England decided, at the last meeting of the Monetary Policy Committee (MPC), to keep interest rates at 5.25%.

Of the nine committee members, two voted in favor of cutting interest rates by 25 basis points in England, to 5%.

In May, the annual inflation rate reached 2%, the committee’s target compared to the Consumer Price Index, compared to 3.2% in March. However, in a position similar to that of the Federal Reserve in the United States, the English institution pointed out that there must be evidence to prove that these cuts will continue over time.

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“The Monetary Policy Committee remains prepared to adjust monetary policy as required by economic data to return inflation to the 2% target on a sustainable basis. Officials warn that the ECB will continue to closely monitor signs of persistent inflationary pressures and the resilience of the economy as a whole.