Indices on the Wall Street extended gains to hit fresh record highs although in a choppy trading day. The Nasdaq and the S&P 500 once again reached new record closing highs. While the Dow edged down 52.82 points or 0.1 percent to 39,291.97, the Nasdaq inched up 25.55 points or 0.1 percent to 18,429.29 and the S&P 500 crept up 4.13 points or 0.1 percent to 5,576.98.
Most of the major sectors ended the day showing only modest moves, contributing to the lackluster close by the broader markets. Banking stocks showed a significant move to the upside. On the other hand, software stocks saw considerable weakness on the day, dragging the Dow Jones U.S. Software Index down by 1.6 percent. Energy stocks also moved to the downside, as the price of crude oil moved lower for the third consecutive session.
The lackluster performance on Wall Street came as traders digested Federal Reserve Chair Jerome Powell’s testimony before the Senate Banking Committee. Powell told the committee more good data would strengthen the central bank’s confidence inflation is moving sustainably toward its 2 percent target and lead to a potential interest rate cut. “The Committee has stated that we do not expect it will be appropriate to reduce the target range for the federal funds rate until we have gained greater confidence that inflation is moving sustainably toward 2 percent,” Powell said in prepared remarks.
In the bond market, treasuries gave back ground following recent strength. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose 3.1 basis points to 4.300 percent. Dollar index is lingering below 105 mark. Traders look ahead to the release of the highly anticipated report on consumer price inflation on Thursday.
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First Published: Jul 10 2024 | 11:09 AM IST
