U.S. Stock Market Analysis for Monday, June 3, 2024
The U.S. stock market experienced a mixed day on Monday, June 3, 2024, with major indices trading lower. The Dow Jones Industrial Average (DJI) fell by 0.57% to close at 38,465.45, the Nasdaq Composite Index (IXIC) dropped by 0.01% to 16,735.01, and the S&P 500 Index (SPX) declined by 0.12% to 5,271.24.
Commodities and Currencies
In the commodities market, Brent crude oil prices fell by 3.67% to $78.13 per barrel, while gold prices rose by 0.90% to $2,343.80 per ounce. Copper prices increased by 1.02% to $880.70. CBOT soybeans dropped by 0.45% to $1,205.00.
In the currency market, the EUR/USD exchange rate rose by 0.47% to 1.0897, the GBP/USD exchange rate increased by 0.48% to 1.2800, and the JPY/USD exchange rate climbed by 0.69% to 0.0064. The CNY/USD exchange rate fell by 0.01% to 0.1381.
Rates and Bonds
The U.S. 10-year Treasury yield decreased by 0.108 to 4.404, the German 10-year bund yield remained unchanged at 2.585, the U.K. 10-year gilt yield fell by 0.007 to 4.218, and the Japanese 10-year bond yield dropped by 0.006 to 1.06.
Stocks
The S&P 500 Index closed at 5,270.03, down 0.14%, the Dow Jones Industrial Average closed at 38,499.33, down 0.48%, and the Nasdaq Composite Index closed at 16,735.01, down 0.01%. The FTSE 100 Index fell by 0.15% to 8,262.75.
Market Insights and Analysis
Despite the mixed performance, analysts remain optimistic about the market's prospects. Consensus estimates forecast an 11% profit growth for the S&P 500 in 2024, which could support stock prices. The economy remains in good shape, and the Federal Reserve is still expected to cut interest rates this year, which could boost market performance.
Key News and Events
- The Chinese EV market is highly competitive, but Nio has some unique offerings.
- The stock market rebounded as the latest economic data did little to alter bets the Federal Reserve will deliver rate cuts this year.
- The Mexican peso and ETFs were negatively impacted by the ruling party's election win, causing investor concerns.
- India ETFs jumped as stock market investors awaited the country's election results.
- Some relief for home buyers: Listings have increased in 90% of major housing markets.
- The possibility of a Fed rate cut in July is still being considered by economists.
- The stock market is defying the traditional "sell in May and go away" trend, with the U.S. presidential election potentially aiding a summer rally.
Expert Opinions and Recommendations
- JPMorgan's top stock recommendations for June include several key picks.
- BTIG weighs in on the S&P 500, considering whether the recent breakout is false or a defensive strategy.
- Analysts are optimistic about Costco amid inflation concerns.
- Jefferies highlights growth-at-a-reasonable-price and earnings momentum stocks.
Market Performance
The Dow Jones Industrial Average has fallen by 1.0% over the past week and is up 2.6% year-to-date. The S&P 500 Index has dropped by 0.5% over the past week and is up 10.6% year-to-date. The Nasdaq Composite Index has fallen by 1.1% over the past week and is up 11.5% year-to-date.
Upcoming Economic Releases
Important economic releases this week include the May nonfarm payrolls report and the ISM manufacturing PMI.
In conclusion, the U.S. stock market experienced a mixed day on Monday, June 3, 2024, with major indices trading lower. Despite this, analysts remain optimistic about the market's prospects, citing strong economic fundamentals and potential interest rate cuts. The upcoming economic releases will provide further insight into the market's direction.
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