News Details

US Stocks End Mixed On Profit-Taking
(21-Jun-2024, 10:41 Hours IST)

US equities ended mixed on Thursday with Nasdaq and the S&P 500 having pulled back off their early highs and into negative territory. The Dow ended the day up 299.90 points or 0.8 percent at a nearly one-month closing high of 39,134.76, but the S&P 500 fell 13.86 points or 0.3 percent to 5,473.17 and the Nasdaq slumped 140.64 points or 0.8 percent to 17,721.59. The downturn by the Nasdaq and the S&P may also have reflected profit taking after the indexes reached new record intraday highs, with the S&P 500 turning lower after climbing above 5,500 for the first time.

Market bellwether Nvidia retreated from earlier gains, while investors evaluated recent economic data and commentary from Federal Reserve officials to determine the timing of interest-rate cuts this year. Shares of Nvidia tumbled by 3.5 percent after surging by as much as 3.8 percent earlier in the trading day.

Data showed that first-time applications for U.S. unemployment benefits fell moderately last week, while new housing construction dropped to the lowest level in nearly four years in May, suggesting that economic activity remained moderate in the second quarter. Initial claims for state unemployment benefits declined 5,000 to a seasonally adjusted 238,000 for the week ended June 15, the Labor Department said. That reversed only about a third of the surge in the prior week, which had pushed up claims to a 10-month high. Moreover, the Commerce Department's Census Bureau said Housing Starts declined 5.2% to a seasonally adjusted annual rate of 982K units in May, and Building Permits fell 2.9% to 949K units.

In the bond market, treasuries moved back to the downside following the rebound seen on Tuesday. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 3.7 basis points to 4.254 percent. The dollar index held above 105.5 on Friday after jumping 0.4% in the previous session, supported by expectations that the Federal Reserve will lag behind other major central banks in easing policy. Reaction to the latest U.S. economic data, including separate reports on existing home sales and leading economic indicators is expected to guide way forward.

Powered by Capital Market - Live News