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U.S. stocks are mixed as investors look to Fed's rate meeting

Published 06/05/2023, 10:41 AM
Updated 06/05/2023, 11:37 AM
© Reuters.

Investing.com -- U.S. stocks are mixed as investors look toward next week’s meeting of the Federal Reserve.

At 11:34 ET (14:19 GMT), the Dow Jones Industrial Average was down 93 points or 0.3%, while the S&P 500 was up 0.3% and the NASDAQ Composite was up 0.6%.

Investors are trying to assess the chances of the Fed raising interest rates again next week after raising them at consecutive meetings since last spring. Data show the economy is slowing, but the labor market remains tight, complicating the Fed’s decision-making.

Stocks rallied on Friday after a report that wage growth moderated last month. That gave some investors hope that the Fed could decide to pause rate hiking at next week’s meeting. The debt ceiling deal that President Joe Biden signed into law over the weekend also helped lift sentiment.

The ISM services index read 50.3, which was below expectations and the reading from April.

Futures traders are putting a 75% probability on the Fed pausing next week. That doesn’t mean the end of interest rate increases, though. The traders are betting on the probability that there will be a rate hike in July.

Shares of Apple Inc (NASDAQ:AAPL) were rising 1.8% ahead of the company’s software developer conference, where it is expected to unveil its mixed reality headset and talk about its artificial intelligence plans.

Spotify (NYSE:SPOT) shares rose 3% after the streaming media company announced plans to lay off 200 workers, or about 2% of its workers, after spending to build its podcast division.

Oil company stocks also rose after the weekend’s meeting of major oil producing nations, where Saudi Arabia agreed to cut another one million barrels a day of production in July and other allies extended existing production goals into next year.

Latest comments

Musk is producing electric cars and spaceships....apple have a new headset.....oooooh apple so ground breaking and innovative! No one will buy it.
Oh, no. That is sad. They worked so hard and will be very sorry to hear that
fyi guys, I really think that Venezuelan stocks are where we all need to be looking. No I'm not crazy. CVX got approval to repair and pump their oil, but get this, THEY AREN'T ALLOWED TO PAY FOR IT. But CVX is just the first, other contracts are coming. Its OBVIOUS that the largest oil reserves in the world are about to have their restrictions removed and that country could be rolling in the money again over the next decade. And American oil companies will be allowed to make a ton, CVX has already Doubled their production predictions for 2023 to 150,000 barrels a day WITHOUT significant production cost increases! Anyway DO SOME READING and take a look at their stock market in the last six months. Venezuela has an Oil bank account twice the size of the Saudi's that they haven't been able to withdraw from and CVX and others to follow are about to reopen it.
stocks don't go down. in stocks what goes up, will always go up. bears are getting crushed. no data, even though bad, will even make the market go down
big specs will be moving into short positions at the 4297-4205 S&P .....
us.stock is lows and high?
Fed again fed again. What a fool fed
How exactly is the economy cooling? Job market extremely strong, inflation still accelerating. Sufficiently vague statements are always interpreted to one's advantage.
CDO, look at today's data.
I guess the job market is finally slowing along with core inflation. Time for overvalued stocks to become more overvalued.
fed is next week. and since there is no other news this fed thing keeps coming every other day. wait for May CPI. it may be 4 % or below and hence a pause for sure
This morning's data reinforces a pause next week. Cooling economy.
Yes, it totally negates data from the
easy long from here onwards, just keep spinning the wheel
Blablabla. Old news, two weeks already same so come up with something new instead.
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