Stock market today: Wall Street drifts higher ahead of July 4th holiday in U.S.
NEW YORK –
Stocks drifted larger Monday as momentum slowed on Wall Street following a robust rally to start out the 12 months. The S&P 500 edged up 0.1%, rising to its highest stage since April 2022. The Dow rose lower than 0.1%. The Nasdaq composite rose 0.2%. Tesla rose after it mentioned the variety of autos it delivered in the course of the spring surged from a 12 months earlier. Much of the remainder of the market was quieter. The U.S. inventory market closed at 1:00 p.m. Eastern time and can stay shut Tuesday in observance of Independence Day.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows under.
Stocks are drifting Monday as momentum slows on Wall Street following its highly effective rally to start out the 12 months.
The S&P 500 was nearly unchanged in noon buying and selling, hanging near its highest stage since April 2022. The Dow Jones Industrial Average was up 9 factors, or lower than 0.1%, at 34,416, as of 11:10 a.m. Eastern time, whereas the Nasdaq composite was principally flat.
Tesla was one of many stronger shares available in the market, rising 7.4%. The firm mentioned over the weekend that the variety of autos it delivered in the course of the spring surged by 83% from a 12 months earlier. That was greater than analysts anticipated, although cuts to costs could have pushed a few of the beneficial properties. Investors will see how a lot the reductions hit income when Tesla reviews its earnings on July 19.
Rivian, one other electric-vehicle firm, jumped 14.3% after it additionally mentioned its deliveries for the spring topped analysts’ expectations.
On the shedding finish of Wall Street was Apple, which slipped 1% after turning into the primary U.S. inventory to complete a buying and selling day with a complete worth of greater than $3 trillion.
Much of the remainder of the market was comparatively quiet following a rally the place the S&P 500 climbed in six of the final seven weeks to ship the index up practically 16% for the primary half of the 12 months.
Trading within the U.S. inventory market will finish at 1 p.m. Eastern time and stay closed Tuesday in observance of Independence Day.
The market’s beneficial properties up to now this 12 months have come because the U.S. economic system has defied many predictions for a recession. The job market particularly has remained stable regardless of a lot larger rates of interest meant to undercut inflation.
One space of the economic system that has faltered is manufacturing, and a report on Monday confirmed it contracted in June for an eighth straight month. The studying from the Institute for Supply Management was worse than economists anticipated.
“Manufacturing is stuck in the mud and it looks like more rain is coming,” mentioned Brian Jacobsen, chief economist at Annex Wealth Management. “The only solace in the ISM report was that inflationary pressures are absent, but that’s little comfort when earnings continue to be at risk.”
Traders however hope that energy in different areas of the economic system will hold it out of a recession, which might help company income. A report later this week will go a great distance towards underscoring or weakening that argument.
On Friday, the U.S. authorities will report its newest month-to-month replace on hiring throughout the economic system, in addition to how a lot wages are rising for employees. It’s one of many final huge items of information left earlier than the Federal Reserve meets subsequent on rate of interest coverage.
The Fed has already hiked charges by a mammoth 5 proportion factors from nearly zero early final 12 months in hopes of getting inflation beneath management. But it is hinted that it could be nearing the top of the will increase, which might imply much less added stress on the economic system and monetary markets. Much of Wall Street expects it to boost charges on July 26.
The hope amongst merchants is that would be the Fed’s last improve of the cycle. The Fed, in the meantime, has hinted that it might maybe elevate charges twice extra this 12 months.
Other than Friday’s jobs report, the opposite huge piece of information that might change the Fed’s pondering earlier than its subsequent assembly are doubtless the most recent updates on month-to-month inflation.
In the bond market, yields swung following the weaker-than-expected knowledge on manufacturing. The yield on the 10-year Treasury recovered from an preliminary drop to stay regular at 3.84%. It helps set charges for mortgages and different vital loans.
The two-year yield, which strikes extra on expectations for the Fed, additionally pared losses to carry regular at 4.90%.
In markets overseas, shares have been modestly decrease in Europe. In Asia, Japan’s Nikkei 225 rose 1.7% so as to add to its large run to start out the 12 months. The quarterly “tankan report” of business sentiment compiled by the Bank of Japan confirmed an enchancment for the fifth consecutive quarter, from June final 12 months.
Stocks have been larger throughout a lot of the remainder of Asia, with Hong Kong up 2.1% and South Korea up 1.5%
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AP Business Writers Yuri Kageyama and Matt Ott contributed.
