A slight change in US indices at the start of Wall Street trading

The Dow Jones Industrial Average rose on Monday as Wall Street entered the last week of June and the first half of 2024 near record levels.

The Dow Jones Industrial Average advanced 263 points, or 0.7%. The S&P 500 added about 0.3%, while the Nasdaq Composite Index rose 0.1%.

According to CNBC, the chip maker’s stock fell 2.6%, in addition to a 4% drop last week that ended an eight-week winning streak. The decline occurred after Nvidia briefly unseated Microsoft as the most valuable company in the United States. Chart analysts also pointed to bearish patterns in Nvidia’s recent trading.

The S&P 500 hit an intraday record of 5,505.53 on Thursday and posted another winning week. The stock index rose 0.6% last week, marking its eighth positive week in nine. However, signs of fatigue have begun to appear recently, especially with the pressure on market heavyweight Nvidia as a result of successive sell-offs.

“Outstanding price performance may face some speed bumps in the future,” said Northern Trust Wealth Management CIO Katie Nixon. “This is not a condemnation of this AI giant’s fundamentals, but more caution about how far the stock will move, and how quickly.”

However, enthusiasm surrounding artificial intelligence has lifted the market significantly this year, even as investors grapple with changing expectations of interest rate cuts and a slowing economy. The S&P 500 has advanced nearly 15% this year after posting 31 record closes.

Investors will be closely watching May personal consumption spending data, the Fed’s preferred measure of inflation, which is scheduled to be released Friday morning.

US Federal Reserve Chairman Austin Goolsbee said on Monday that more weak inflation readings will raise questions about whether interest rates are too high.

Goolsby said in statements on the channel: “If we get more months, like what we just saw last month on inflation, coupled with slowing conditions in some other parts of the real economy, you have to start to wonder whether we remain as constrained as we are.”

Although he would not commit to when he believes interest rate cuts will be appropriate, Goolsbee noted that he is “optimistic” that the inflation rate is heading back toward the US Federal Reserve’s 2% target.

The head of the Chicago Fed did not vote this year on the Federal Open Market Committee, which sets interest rates.

US indices rose slightly at the Wall Street open. The Dow Jones Industrial Average rose on Monday as the market entered the last week of June and the first half of 2024 near record levels.

The Dow Jones Industrial Average advanced 263 points, or 0.7%. The S&P 500 added about 0.3%, while the Nasdaq Composite Index rose 0.1%.