Yahoo Finance Stock Market News for Jun 7, 2023
U.S. stock markets closed marginally higher on Tuesday after a choppy session. Market participants were cautiously waiting for Fed’s next FOMC meeting this month. Investors are also waiting for a key inflation data to be released next week. All three major stock indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained less than 0.1% to close at 33,573.28. Notably, 22 components of the 30-stock index ended in positive territory, while eight in negative zone.
The major gainer of the blue-chip index was Intel Corp. INTC after jumping 3.7%. Intel currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The tech-heavy Nasdaq Composite finished at 13,276.42, advancing 0.4% due to strong performance of large-cap technology stocks. The tech-laden index registered its highest close since Apr 20, 2022. The S&P 500 was up 0.2% to end at 4,283.85. The broad-market index recorded its highest close since Aug 16, 2022.
Seven out of 11 broad sectors of the benchmark index closed in positive territory while four in negative zone. The Financials Select Sector SPDR (XLF) and the Consumer Discretionary Select Sector SPDR (XLY) rose 1.3% and 1%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 5.2% to 13.96. Advancers outnumbered decliners on the NYSE by a 3.47-to-1 ratio. On Nasdaq, a 2.59-to-1 ratio favored advancing issues. The S&P 500 recorded 17 new 52-week highs and five new 52-week lows while the Nasdaq registered 98 new 52-week highs and 69 new 52-week lows.
Debt Ceiling Act
President Joe Biden has signed the Fiscal Responsibility bill to convert it into an act. Earlier the U.S. Congress passed the Fiscal Responsibility bill, which will raise the debt ceiling and cap government spending for two years.
On May 31, the U.S. House of Representatives passed the bill by a voting margin of 314-117. On Jun 1, the U.S. Senate voted in favor of the bill with a margin of 63-36. This enabled the U.S. government to avoid a default by allowing the federal government to raise the legal borrowing capacity before June 5.
June FOMC in Focus
The Fed is scheduled to meet for its next FOMC on Jun 13-14. The CME FedWatch tool is showing there exists 76% probability that the central bank will keep the benchmark lending rate at 5-5.25%. However, 24% respondents are expecting a 25 basis-point hike in June.
Inflation has declined to a great extent from its June 2022 level though its still remained highly elevated. Several key economic metrics have declined steadily in the past year. However, the key labor market remained stubbornly resilient. This makes market participants indecisive about Fed’s next move regarding interest rate.
SEC Sues Crypto Exchange
The Securities and Exchange Commission sued crypto exchange Coinbase Global Inc. COIN in New York federal court accusing it to operate as an unregistered crypto currency broker and exchange. The SEC demanded the company be “permanently restrained and enjoined” from continuing to do so.
The stock price of Coinbase plunged 12.1% following the development. On Monday, shares of Coinbase plummeted more than 9% after the SEC registered legal suit against the rival crypto exchange Binance.
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