The indices closed the current session at a new historic high S&P 500 and Nasdaqled by Apple, while the iPhone maker rose to new records.
THE S&P 500 strengthened by 0.27% to close at 5,375.32 units, while the o Nasdaq ended at 17,343.55 points with an increase of 0.88%. On the other hand, however, Dow Jones decreased by 120.62 points or 0.31% to close at 38,747.42 points.
Now, investors are rushing to cash in on profits from artificial intelligence leader Nvidia, which has handed over the reins to Apple, opening up a host of new iPhone enhancement applications. The company saw its stock jump 7.3%, while Nvidia lost 0.7% of its value.
But banks remain under pressure, with giants such as JPMorgan Chase & Co and Citigroup taking the biggest hits. US Treasury yields fell with demand for the 10-year note particularly strong – the most since February 2022, a month before the start of the monetary policy tightening cycle.
Meanwhile, the Federal Reserve began its two-day meeting that ends Wednesday evening. It will announce its decision on interest rates, which are expected to remain unchanged, while the interview with President Jerome Powell will also be of interest. While some indicators suggest that the economy is slowing, investors believe that this will not be enough to encourage the US central bank to cut interest rates within 2024.
Marko Kolanovic, strategist at JPMorgan, warned that the chances of a rate cut decreased after the better-than-expected jobs data in March.
“In general, the market is starting to prepare for a more aggressive signal from the Fed, not necessarily that it intends to raise rates, but that it will take longer to cut rates,” said Bill Mertz, head of research at US Bank Wealth Capital markets management.
Hopefully the consumer price data will be released before the Fed meeting.