June Off to a Slow Start for the Stock Market

The three major stock indices were slightly elevated when trading closed off on Tuesday, but overall, this month has been a muted one across the stock market.

The Dow Jones Industrial Average closed with a slight increase and is now down 0.09% in premarket trading. The Nasdaq Composite is only elevated by 0.17% compared to the previous day of trading, and the S&P 500 is up just 0.15%.

Even though May had set some records for the market with high trading despite elevated inflation, June is moving much slower. Investors are less inclined to take risks and are trading with trepidation as inflation remains unyielding.

The markets were anticipating a drop in inflation, but recent FOMC meeting minutes showed that inflation was hardly budging and could remain very high for the future. That prompted the Federal Reserve to take a hawkish stance and to announce no date for interest rate cuts. Those interest rates are at a historic high and have remained high for months, indicating that the US government is not hopeful on inflation.

That sentiment has trickled down into the markets, catching up with them for June and making the month a very sluggish one for stock trading.

What Might Make the Market Turn around

Investors should be looking at economic data coming out this week, which would include the US Final Services PMI and ISM Services PMI. ADP Nonfarm Employment Change data will also be released later today, and all this can be added to the FOMC meeting data we received recently that showed that inflation was holding strong.

If these reports show any indication that things may be improving for the economy or that inflation could be easing, then the stock market could start to pick up. Several major earnings reports released Tuesday, including Lululemon, Dollar Tree, and JM Smucker, which could help move the market as the data is processed by investors.

ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.

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