Stock market today: Stock rally fizzles after more cool inflation data, Tesla rises ahead of Musk pay decision
What events contributed to the stock market records mentioned in the news?
The stock market records mentioned in the news were influenced by a few key events:
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Cooling Inflation: The producer price index for May fell by 0.2% month-over-month, indicating that inflation is easing. This is a significant factor as it impacts the Federal Reserve's decisions on interest rates.
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Federal Reserve's Outlook on Rates: The Federal Reserve shifted its outlook from three rate cuts this year to just one. However, Chair Jerome Powell reminded that the projection isn't set in stone, and traders are still pricing in two rate cuts starting in September.
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Tesla's CEO Compensation: Tesla's shareholders' vote on whether to approve a $56 billion pay package for its CEO Elon Musk also drew attention. The package was approved "by wide margins," contributing to a 4% jump in Tesla stock.
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Broadcom's Upbeat Results: Broadcom, a key supplier to Apple, experienced a jump in shares after reporting upbeat results. This was largely due to increased demand for AI technology, which has been a significant driver of the market rally.
What were the closing figures for the S&P 500 and Nasdaq Composite on the day mentioned in the article?
On the day mentioned in the article, the S&P 500 closed at a fresh all-time high, rising more than 0.2% after topping 5,400. Meanwhile, the Nasdaq Composite popped about 0.3% on the heels of taking out a record of its own. The specific closing figures for the indices are not provided in the article.
How has the Federal Reserve adjusted its interest rate cut projections for the year?
The Federal Reserve has adjusted its interest rate cut projections for the year, signaling that it now expects to cut rates just once in 2024, instead of the three times it had previously forecast. This decision was made after considering the cooler-than-expected inflation data for May. However, Fed Chair Jerome Powell reiterated that the central bank will not cut rates until it sees more data showing that inflation is cooling. Despite the adjusted projection, investors are still anticipating two rate cuts starting in September, as indicated by the CME FedWatch tool.