Stocks began the day higher on Thursday following strong earnings from Nvidia and news of a ten-for-one stock split. The S&P 500 and Nasdaq Composite hit new all-time highs before turning lower due to stronger than expected economic data. The Nasdaq Composite closed down 0.4% while the S&P 500 fell by 0.7%, with only 54 stocks in the index closing higher. Despite the market’s overall decline, Nvidia managed to hold onto most of its gains for the day, closing higher by over 9% at almost $1038.
The Manufacturing Purchasing Managers Index (PMI) and Services PMI both came in stronger than expected, following the release of minutes from the last Federal Reserve meeting, where it was suggested that rates may need to stay higher for longer if economic data remains inflationary. The market did not react positively to this news, despite positive economic data. In other news, GameStop shares continued to fall, closing at $12.88, down 13%, while Boeing shares dropped 7.5% to $172.21 after announcing negative cash flows for the year and a recent accident involving a Boeing 777 plane.
In a reversal of course, the Securities and Exchange Commission (SEC) approved an ETF to trade crypto product ether, the second largest cryptocurrency after bitcoin. This approval marks a positive development for the crypto market, as bitcoin ETFs have brought in $30 billion since their launch. The market value of ether is around one-third that of bitcoin, so it remains to be seen how this approval will impact prices. The Department of Justice also announced it was suing Live Nation Entertainment for violating antitrust laws, causing its stock to drop almost 8%.
Looking ahead, investors will be watching to see how economic data continues to influence the market and if there will be any follow-through from Thursday’s decline. Despite yesterday’s selling, which was described as orderly rather than panic-driven, volume is expected to slow down as the day progresses. Traders may be flattening out positions before the long weekend, resulting in lower activity. It is advised to stick with investing plans and long-term objectives during this time of market volatility.
As the market reacts to economic data and news developments, it is important to remember the significance of Memorial Day and honor those who have served and sacrificed for the country. In a year marked by political divide, it is crucial to recognize the common values that unite us as a nation. The lives lost defending these shared values and ensuring free and fair elections should be remembered and appreciated. This message serves as a reminder that despite differences, unity in honoring those who serve is paramount.
