The Nasdaq reached a new all-time high on Tuesday, despite a turbulent trading day with mixed results and cautious statements from the Federal Reserve. The lack of significant economic news was noted by Jack Ablin of Cresset Capital, who highlighted Nvidia’s upcoming earnings report as a key event for the week. Nvidia’s stock rose by 0.6 percent.
Federal Reserve Governor Christopher Waller acknowledged the recent consumer price index report showing modest inflation but emphasized the need for more data before considering any interest rate adjustments. The Nasdaq Composite Index closed at 16,832.62, up 0.2 percent and setting a new record for the second consecutive day. The Dow Jones Industrial Average and the S&P 500 also saw gains of 0.2 percent each, closing at 19,872.99 and 5,321.41 respectively.
Ablin expressed concerns that the stock market may be overvalued at the moment, especially when compared to bonds, stating that it is currently the most expensive since the financial crisis. All three major indices had reached record highs the previous week following reports of slowing inflation.
Among individual companies, Lowe’s stock dropped by 1.9 percent despite beating analysts’ earnings expectations, as its revenue fell by around four percent to $21.4 billion. Trump Media & Technology Group saw an 8.7 percent decrease in its stock price after reporting a net loss of $327.6 million for the quarter ending on March 31. On the other hand, Disney’s shares rose by 0.1 percent following news of layoffs at its animation studio, Pixar, affecting approximately 14 percent of its workforce.
In conclusion, the stock market experienced a mixed trading day with the Nasdaq setting a new record high, driven by limited economic news and cautious remarks from the Federal Reserve. The upcoming Nvidia earnings report was highlighted as a key event for the week, while concerns were raised about the stock market being potentially overpriced compared to bonds. Individual companies showed varied performances, with Lowe’s experiencing a drop in stock price despite beating earnings expectations, while Disney saw a slight increase in its shares following news of layoffs at Pixar.
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https://www.barrons.com/news/nasdaq-edges-to-fresh-record-ahead-of-nvidia-results-9aeb2539
