New York Stock Market Mixed... S&P 500 Hits Intraday High on 'NVIDIA Rally'

Nvidia, No.1 in Market Cap, Rises 3%
Last Week's Unemployment Claims 238K... Exceed Expectations

The three major U.S. stock indices, which were closed the previous day for the Juneteenth holiday commemorating the abolition of slavery, showed mixed trends in early trading on the 20th (local time). Following last month's consumer spending data and last week's employment figures, both of which were weaker than expected, the rally of AI superstar Nvidia continued, pushing the S&P 500 index to an intraday all-time high.

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As of 9:39 a.m. at the New York Stock Exchange (NYSE) on this day, the Dow Jones Industrial Average was down 0.05% from the previous close, standing at 38,815.79. The large-cap-focused S&P 500 index was up 0.44% at 5,497.09, and the tech-heavy Nasdaq index was trading 0.25% higher at 17,907.57. The S&P 500 index, which set its 31st all-time high this year on the 18th, again reached a new intraday record on this day.

By individual stocks, Nvidia, which became the world's largest company by market capitalization on the 18th, rose 3.08% again today. Global consulting firm Accenture surged 6.91%, standing out in the AI business despite recent weak earnings. Trump Media & Technology Group (TMTG), the parent company of the social networking service Truth Social created by former President Donald Trump, fell sharply by 9.04% on news of new share issuance.

Scott Kroner, Chief U.S. Equity Strategist at Citigroup, said, "Is it surprising that Wall Street continues to beat a different drum from the fundamental U.S. economy?" He added, "Undoubtedly, the influence of generative AI is penetrating the current U.S. stock environment as a growth driver."

Despite signs of economic slowdown such as last month's slower-than-expected retail sales growth, the stock market has not been significantly affected. However, except for some big tech stocks, the gains have not been large, raising concerns that the market may face a correction going forward.

Thomas Fitzpatrick, Managing Director at R.J. O'Brien & Associates, analyzed, "The AI theme gives a feeling similar to the 2000-2001 dot-com bubble," but added, "However, the market can remain irrational longer than we can handle."

Last week, new U.S. unemployment claims exceeded market expectations. According to the U.S. Department of Labor on this day, new unemployment claims for the week of June 9-15 totaled 238,000, slightly above the expert forecast of 235,000. This was down from the revised 243,000 claims the previous week. New unemployment claims reflect corporate layoff trends. Continued claims, which count those applying for unemployment benefits for at least two weeks, were 1,828,000 for the week of June 2-8, an increase of 15,000 from the previous week.

Housing starts in May were recorded at 1,277,000, down 5.5% from the previous month. This figure fell short of both the expert forecast of 1,370,000 and the previous month's 1,352,000. Building permits approved last month decreased 3.8% month-over-month to 1,386,000, also below the forecast of 1,450,000 and the previous month's 1,440,000.

Later in the day, remarks by Thomas Barkin, President of the Richmond Federal Reserve Bank, are scheduled. With inflation and retail sales slowing, investors are expected to gauge the future interest rate path through Fed officials' comments.

Government bond yields are rising. The U.S. 10-year Treasury yield, a global benchmark for bond yields, rose 11 basis points (1 bp = 0.01 percentage points) from the previous trading day to 4.26%, while the 2-year Treasury yield, sensitive to monetary policy, traded 2 basis points higher at 4.73%.

International oil prices are on the rise. West Texas Intermediate (WTI) crude oil increased by $0.51 (0.63%) to $81.22 per barrel, and Brent crude, the global oil price benchmark, rose $0.66 (0.78%) to $85.73 per barrel.