📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

Stock Market Today: S&P 500 ends above 5,400 for first time despite hawkish Fed

Published 06/11/2024, 07:40 PM
Updated 06/12/2024, 04:13 PM
© Reuters

Investing.com -- The S&P 500 closed above 5,400 Wednesday as the Fed's outlook for fewer cuts were overshadow by data showing inflation cooled more than expected in May, stoking optimism that the disinflation trend remains intact.   

At 16:00 ET (20:00 GMT), S&P 500 rose 0.8% to close at a record 5,420, after hitting a intraday record of 5,447.02 and NASDAQ Composite rose 1.5% to third-straight record close, while the Dow Jones Industrial Average fell 35 points, or 0.1%,

Fed sees just one cut for 2024; CPI in May cools more than expected

The Federal Reserve kept interest rates steady on Wednesday, but now sees just one rate cut for the year, as inflation is expected to trend higher than previously expected.

Fed members now see the benchmark rate falling to 5.1% this year, suggesting just one rate cut in 2024, compared with a prior estimate in March for three cuts. In 2025, Fed members see the rates falling to 4.1%, up from a prior forecast for 3.9%, before eventually declining to 3.1% in 2026.

"The shifts in the projections of the Fed's SEP are more hawkish than we anticipated," Economists at Jefferies said in a Wednesday note following the decision. 

The decision arrived on the heels of data showing U.S. consumer prices increased by less than expected on an annualized basis in May, as the consumer price index rose by 3.3% last month, decelerating slightly from 3.4% in April. Month-on-month, the reading slowed to 0.0% from 0.3%.

Oracle surges on AI partnerships 

The tech market remained in focus Wednesday, with Oracle (NYSE:ORCL) stock rose 13% after the computer technology group announced two new partnerships with ChatGPT-maker OpenAI and Google (NASDAQ:GOOGL) Cloud in a bid to extend the reach of its AI infrastructure, while also unveiling a healthy forecast for revenue growth in its 2025 fiscal year. 

Elsewhere, Rubrik (NYSE:RBRK) stock fell 8% despite the cloud data management company delivering guidance and first-quarter results that topped expectations. 

Apple Inc (NASDAQ:AAPL), meanwhile, continued to ride AI optimism higher as the iPhone maker briefly took Microsoft (NASDAQ:MSFT)'s crown as the most valuable company by market cap, a day after a 7% jump as Wall Street cheered its plans to foray into AI.

Bitcoin gives up some gains, but crypto stocks end higher

Bitcoin gave up gains after the Fed decision and hawkish outlook, but cryptocurrency-related stocks in including Coinbase Global Inc (NASDAQ:COIN), MicroStrategy Incorporated (NASDAQ:MSTR), and Marathon Digital Holdings Inc (NASDAQ:MARA) higher.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.