THE S&P 500 posted small gains for the second straight session as investors tried to price their portfolios as the first half of the year drew to a close.
The index increased slightly by 0.16% or by 8.6 points to 5,477.90 points, while the Dow Jones closed at 39,127.80 points with a marginal increase of 0.04% or 15.6 points. THE Nasdaq recorded gains of 0.49% to close at 17,805.16 points.
The Nasdaq is expected to end the first half with gains of 18.4% thanks to Nvidia’s rally. After being weak for most of today’s session, Nvidia stock finally closed up 0.25%. Its move was restrained, however, after rising 7% on Tuesday.
Investors are eagerly awaiting US inflation data for May due on Friday. This is the individual consumer spending index that the Fed monitors closely for the pace of inflation.
“The stock market is currently very expensive. Investors believe that a correction in equity prices for the tech majors is imminent,” said David Bahnsen, chief investment officer of The Bahnsen Group.
In individual stocks, FedEx rose 12% on the back of better-than-expected quarterly results, while Rivian Automotive rose 21% after VW said it would invest $5 billion in the electric car maker.
The KBW index for banks also closed slightly lower ahead of the results for the Fed’s annual stress tests.
July was seen as the strongest month of the year for the S&P 500 since its inception and more recently in the past two decades, according to data from Bespoke Investment Group.