Nasdaq S&P hit another record high, U.S. oil returned to $80

NVIDIA hits a new intraday high, may benefit from fund rebalancing buying

Nvidia hit a new intraday high. It may benefit from fund rebalancing buying.
*The three major stock indexes generally rose. The Dow rose nearly 200 points; *Medium- and long-term U.S. bond yields rebounded. The benchmark 10-year U.S. bond approached 4.30%; *Apple will close the Pay Later program that allows customers to pay in installments.
U.S. stocks rose across the board on Monday as investors awaited new economic data and comments from Federal Reserve officials on monetary policy.
As of the close, the Dow rose 188.94 points, or 0.49%, to 38778.10 points. The Nasdaq rose 0.95% to 17857.02 points. The S&P 500 index rose 0.77% to 5473.23 points. The Nasdaq and S&P hit new record highs.
Market Overview The New York Fed said on Monday that the state\’s manufacturing business conditions index edged back to -6 in June, shrinking for the seventh consecutive month. But it was better than market expectations.
Among them, the new orders index climbed to -1, a nine-month high. Shipments rose 4.5 points to 3.3, returning to the expansion range for the first time in the past seven months.
Mid- and long-term U.S. bond yields rebounded sharply. The current 2-year U.S. bond, which is related to interest rate expectations, rose to 4.76%, an increase of 7.6 basis points. The benchmark 10-year U.S. bond rose to 4.28%.
Federal funds rate futures show that while the latest Fed dot plot points to one rate cut this year, the market is still weighing the prospect of two rate cuts this year.
Philadelphia Fed President Harker said on Monday that if his prediction is correct, the Fed will be able to cut its benchmark interest rate once this year.
New York Fed President Williams and Fed Governor Cook are due to speak later on Monday.
In addition to the remarks of Federal Reserve officials, economic data has also received widespread attention.
The performance of indicators including retail sales, industrial production, housing starts and S&P PMI data in May may affect the Federal Reserve\’s judgment on the outlook for economic and monetary policy, thereby affecting the trend of risk assets.
Goldman Sachs raised its target for the S&P 500 by the end of 2024 from 5,200 to 5,600. Evercore ISI raised its forecast from 4,750 to 6,000.
Both brokerages cited the prospects and market enthusiasm for the technology and artificial intelligence industries as reasons for the adjustments.
Mona Mahajan, senior investment strategist at Edward Jones, believes that even in previous bull markets, the rise was usually not smooth sailing.
Overall, the fundamentals and backdrop remain supportive. But we expect to face some selling along the way.
She added that there are typically two or three corrections in any given trading year.
In terms of individual stocks, Nvidia fell 0.7% after hitting a record high during the session. State Street said that the chip maker may have more than 20% weight in the rebalancing of its technology exchange-traded fund.
The Philadelphia Semiconductor Index broke through a record high during the session.
Broadcom and TSMC performed well. Micron Technology rose after brokers raised their price targets.
Apple rose 2.0%. The company announced that it would shut down its Pay Later program that allowed customers to pay in installments. It was also reported that the company is planning to develop thinner models for the upcoming iPhone 17 series.
Microsoft rose 1.3%. Wedbush raised the company\’s target price from $500 to $550. It maintained an outperform rating. It said artificial intelligence will change the growth trajectory of cloud.
Autodesk shares rose 6.5% after reports that activist investor Starboard Value bought about $500 million in shares of the software maker.
International oil prices rebounded sharply.
The front-month contract of WTI crude oil rose 2.40% to US$80.33/barrel. The front-month contract of Brent crude oil rose 1.97% to US$84.25/barrel.
Affected by the rise in the U.S. dollar and U.S. bond yields, international gold prices fell.
COMEX gold futures for June delivery on the New York Mercantile Exchange fell 0.81% to US$2,312.40 per ounce.

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