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Stock Market Today: S&P 500 ekes out gain as focus shifts to key inflation report

Published 04/08/2024, 07:52 PM
Updated 04/09/2024, 04:32 PM
© Reuters
- U.S. stocks eked out a gain Tuesday, but investors had to contend with swings between in losses and gains amid pressure from an Nvidia-led dip in tech just a day ahead of key inflation data.

At 16:00 ET (21:00 GMT), Dow Jones Industrial Average fell 9 points, or 0.02%, S&P 500 gained 0.1%, and NASDAQ Composite gained 0.3%.

Nvidia slip weighs on tech, Alphabet jumps

Nvidia (NASDAQ:NVDA) fell 2% as a slip below a key technical level of $850 appeared to attract more selling pressure just as rival Intel (NASDAQ:INTC) unveiled that its Gaudi 3 chip that the latter said delivers better performance and uses less power.  

Still strong gains in Wolfspeed Inc (NYSE:WOLF), GlobalFoundries Inc (NASDAQ:GFS), and Amkor Technology Inc (NASDAQ:AMKR) helped keep the chip stocks trending higher with the latter up more than 7% on the day after Needham started coverage on the stock at buy with a $40 price target, saying it was "underappreciated" story amid exposure to artificial intelligence.   

Steeper downside moments in the broader the sector, however, was kept in check by a more than 1% rise in Alphabet (NASDAQ:GOOGL) as the company unveiled new custom Arm-chips as well as several partnerships for its cloud business ahead of its Google Cloud Next keynote.

CPI inflation, Fed minutes eyed for more clues on rate cuts

The consumer price index inflation data for March due Wednesday is expected to show inflation potentially picking up, though the core measure, which excludes food and energy and is more closely watched by the Fed, is expected to have cooled to a 0.3% pace in March from 0.4% month earlier.  Sticky inflation has been a major point of contention for the Fed in potentially lowering interest rates. A string of officials have warned that high inflation could potentially delay rate cuts this year.

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The minutes of the Fed's March meeting also due on Wednesday will likely provide further clues on the rate path ahead after the central bank guided for 75 basis points of rate cuts this year at this meeting. Traders, however, have been cutting expectations that the Fed will reduce interest rates by as soon as June. The CME Fedwatch tool shows a 54% chance for a 25 basis point cut in June.

Treasury yields traded lower ahead of the data, with the yield on the 10-year Treasury falling 6 basis points lower at 4.36%.

Boeing in fresh woes, Q1 deliveries slide

Boeing Co (NYSE:BA) fell nearly 2% as the aircraft maker is under investigation from the Federal Aviation Administration after a whistle-blower called out flaws in the company's 787 Dreamliner, the New York Times reported Tuesday. The whistle blower reportedly told the New York Times that the fuselage of the 787 Dreamliner was fastened correctly and prone to breaking apart after after thousands of trips.

The report, which serves as another blow to the company's reputation, comes just days after an engine cover on a Boeing 737-800 Southwest Airlines (NYSE:LUV) fell off on Sunday, prompting the FAA to launch an investigation into the incident.   

The halts to production amid regulatory probes have weighed on Boeing's aircraft output as the aircraft maker delivered just 83 commercial airplanes in the first quarter, the lowest quarterly total in nearly three years.

Lucid rises on Q1 delivers; financials lower ahead of Q1 earnings

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Lucid Group Inc (NASDAQ:LCID) stock, meanwhile, rose over 2% after the EV manufacturer reported first-quarter deliveries above market expectations on Tuesday as price cuts helped boost demand for its luxury electric sedans.

Financials, meanwhile, were also trading below the flatline as banks  including JPMorgan Chase (NYSE:JPM), Citigroup and Wells Fargo prepare to kick off the Q1 earnings season in earnest on Friday.

Delta Air Lines Inc (NYSE:DAL) and BlackRock Inc (NYSE:BLK) are also set to provide quarterly reports this week.

Investors will be watching to see whether Wall Street majors can justify a massive run-up in valuations seen over the past three months.

(Peter Nurse, Ambar Warrick contributed to this article.)

Latest comments

stick to good dividends payers, and speculate on no more than 5% if you are not one of the manipulators, the market is controlled by fewer and fewer people, who can change it in minutes
People can get 5% risk free on their assets but allowing hedge funds to pump their 401ks into a handful of tech stocks with P/Es near 100 while they are taking out short positions for the impending crash. There is no point in stock market history where current market P/E level has been maintained without a massive collapse.
Another late trade miracle in the laughingstock of the investing world, as the FRAUD continues in broad daylight.
Keep borrowing money to buy stocks. You don't want to miss out, do you?
are you talking to the DJT-bagholders?
miracle on BROADWAY! Can't script that up!
and voilà ALL GREEN BABY!
I knew everything falling is because of Nvidia! lol
Why do you guys take so long to update your news? Everyone is on point accept for you.
Why do you guys take so long to update your news? Everyone is in point accept for you.
60%+ of the loss magically vanishes into thin air. Criminal intervention in every loss, unlimited upside during gains, only in the BIGGEST INVESTMENT JOKE IN THE WORLD.
Lower highs and lower lows... its selling off properly... a strong bull trend takes time to weaken and reverse.
It is a normal trading cycle. Ups and downs. Stocks never go always up or always down.
Alexander If thats the case then where is the down lol. Just up up & away
Biden love you. He is down for your struggle. Reach way down in your pocket and pull out a crisp $20 bill. Send it to DNC c/o Jill ,& Joe Biden
Treasury notes rising by alot. Waterfall selling starting either in the last moments of today's session or tomorrow, through friday.
I think it is expectations that core inflation will fall tomorrow - so yields will go down, bonds up, stocks up. Will depend on the data though, we will see. The reason stocks are down or volatile since yesterday is because big investors are repositioning their portfolios - selling overvalued, buying undervalued.
only suckers will believe I already sold off and kept the cash warm
Simply brilliant and I couldn't agree with you more. We think alike and keep the cash flowing!
Keep your cash flow up and be ready for sudden dangers. Defeat them my friend!
I cannot afford to pay for rent or food, but thanks to Biden I get free internet paid for by other tapayers so that I can watch rich people make money in the stock market!
and cheaper big screen TVs...its important to have at least half a dozen in your house
taking a blind 50/50 stab at what the market is doing would have greater accuracy than your headlines
why would you rely on a headline to determine a direction before placing a trade. that's a good way to lose money.
The market is trans like me. Although it is down it identifies as being up. I would like to thank MSM for respecting the market's self-identity.
What they see is what they talk, practical writers
As a trans woman, I find this market to be too stressful. I'm heading to Planet Fitness to hang out in the women's locker room and watch them change.
LOL! That's a great plan actually :)
Really, take another look Jack.
Like clockwork, the 11AM floor of titanium is in place, and a miraculous intraday reversal begins. Remarkable how there's no 11AM ceiling during a rally. Criminally manipulated JOKE.
Does anyone remember that forgotten indicator, the inverted yield curve?
shhhh..we need stocks up news. Just look at Gold if you want an indicator of confidence in the markets
Will go higher 36.100
Well. It looks like Tech is going for a rally today. That means we sell tomorrow. Let's make some money!
Not so sure now. I'm positioned long heading into tomorrow. Thought that maybe I could take profits today. Like everyone else. Wait and see.
It always goes up then drops midday into close.
the have instructions to try and limit volatility during that time period.
as for the closing that's about risk evaluation by market participants.
not sugar levels....
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