Record Highs for Stock Market But Little Overall Change
Two major indices reached new highs this week without changing much while the Dow Jones fell on Thursday.
Quick overview
- The Nasdaq Composite and S&P 500 reached all-time highs, with minor gains of 0.18% and 0.07% respectively.
- The Dow Jones was the only major index to decline, falling 0.70% by the end of trading.
- Gold futures are trending lower while oil futures are slightly climbing, indicating mixed movements in commodities.
- The upcoming Federal Reserve meeting may discuss a potential interest rate cut amid signs of improvement in the job market.
The Nasdaq Composite and S&P 50 stock indices reached all-time highs on Thursday, and yet they did not change much, with the Nasdaq adding 0.18% and the S&P 500 gaining 0.07%.
The Dow Jones was the only major index to lose out on Thursday, falling 0.70% by the end of trading while the Nasdaq and S&P 500 climbed marginally. However, both for those two rising indices achieved record highs and could continue to push upward through Friday.
Gold futures are trending lower for now while oil futures are climbing slightly. The yield for 10-year Treasury notes has hardly changed, in line with where the stock market is moving. We are not seeing much change in most of the major indices, but with an elevated market and an economy that is stabilizing, stocks are showing indications of good overall health.
There is growth in the tech sector in particular, with Nvidia (NVDA) and Microsoft (MSFT) continuing to post their highest numbers ever in recent weeks. That growth is certainly not taking place across the board nor among all of the Magnificent Seven stocks. Specifically, Tesla (TSLA) is way down, having lost 9% of its value earlier this week. The stock is rebounding slightly today, with a gain of 1.86%, but it is still a long way off from its early 2025 values.
Influencing Factors to Know about
Because there is little overall movement in the stock market, there are no significant influencing factors to take note of. Investors should be aware that President Donald Trump is still threatening new tariffs to many of its trade partners, with a deadline of August 1st for them to respond. However, we have seen tariff matters have little impact on the market lately.
There is an upcoming Federal Reserve meeting taking place next week from the 29th through the 30th. The Fed will likely discuss the possibility of an interest rate cut and may even announce that a cut is coming very soon. Even though inflation is still sticky, the recent unemployment claims report shows that the job market is improving. This may be enough positive information to prompt an immediate cut from the Fed for interest rates.
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