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S&P 500 Hovers Near 5,500 Mark as US Yields Climb: Markets Wrap

Jun 20, 2024 - financialpost.com
The S&P 500 briefly surpassed the 5,500 mark, indicating an overbought market, with mixed performances from big tech companies like Apple Inc. and Nvidia Corp. Despite the S&P 500's record-breaking rally, fewer stocks are participating in this year's rally, with nearly a third of its constituents hitting a one-month low in the past month. This, coupled with weak market breadth, raises questions about the rally's sustainability.

In other market news, Dell Technologies Inc. is building a "Dell AI factory" for Elon Musk’s startup xAI, alongside Nvidia. Treasury 10-year yields advanced six basis points to 4.28%, and the dollar rose. Traders anticipate a cut in interest rates by the Bank of England in August. Meanwhile, new home construction has slumped to a four-year low, and US initial jobless claims were little changed at 238,000 last week.

Key takeaways:

  • The S&P 500 briefly topped the historic 5,500 mark, indicating an overbought market with signs of buyer exhaustion.
  • US initial jobless claims were little changed at 238,000 last week.
  • Nearly a third of S&P 500 constituents have hit a one-month low in the past month, indicating a weak market breadth.
  • Traders are betting the Bank of England will cut interest rates in August after policymakers signaled they are willing to start easing monetary policy.
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