On Monday, U.S. stocks experienced a decline, largely influenced by a sell-off in tech stocks, particularly Nvidia. The tech giant saw a 5% drop and is now down 14% from its recent all-time high, following a 143% surge this year. This decline is mainly attributed to profit-taking after the significant rally experienced by Nvidia. Investors are currently shifting their focus towards the upcoming release of PCE inflation data expected on Friday morning.
With the conclusion of the earnings season, investors are eagerly awaiting the personal consumption spending data to be released on Friday. Analysts are anticipating a 2.6% year-on-year core PCE for May, compared to the previous reading of 2.7% in April. Additionally, investors will be monitoring other key economic indicators such as initial jobless claims, pending home sales, and a second review of the first-quarter GDP to gain a better understanding of the overall strength of the U.S. economy.
The data collected from these reports will play a crucial role in determining when the Federal Reserve might implement its first interest rate cut of the cycle. Market predictions suggest that the initial rate cut could possibly happen in September. Federal Reserve Chair Mary Daly recently highlighted that the U.S. labor market is displaying signs of a potential turning point, indicating a potential downward trajectory.
At the closing bell on Monday, the major U.S. indices were as follows: West Texas Intermediate Crude oil rose by 1.18% to $81.68 per barrel, while Brent Crude, the international benchmark index, increased by 0.95% to $86.05 per barrel. Gold also experienced a rise of 0.62% to reach $2,345.60 per ounce. The 10-year Treasury yield remained steady at 4.25%. However, Bitcoin witnessed a decline of 5.49%, dropping to $59,713.
Overall, the market displayed a mixed performance on Monday, underpinned by concerns surrounding the tech sector and Nvidia’s stock decline. Investors are closely monitoring upcoming economic data releases to assess the trajectory of the U.S. economy and the potential timing of the Federal Reserve’s next interest rate cut.
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https://markets.businessinsider.com/news/stocks/stock-market-today-nvidia-nvda-decline-drags-tech-sector-lower-2024-6
