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  • Writer's pictureThe San Juan Daily Star

Nasdaq, S&P 500 rise with Apple; investors await inflation report, Fed decision

The S&P 500 and Nasdaq ended higher on Tuesday, helped by sharp gains in shares of Apple, while investors also awaited consumer prices data and a policy announcement from the Federal Reserve.


Apple shares jumped to a record and gave the S&P 500 and Nasdaq their biggest boosts after the stock declined in the previous session.


At its annual developer event that kicked off on Monday, Apple unveiled new artificial-intelligence features meant to increase the appeal of its devices, including an improved Siri virtual assistant that can answer a wider range of queries and accomplish more complicated tasks than earlier.


The S&P 500 technology index was up sharply.


The Consumer Price Index report will be released on Wednesday, and the U.S. central bank’s policy announcement also is due on Wednesday.


The central bank is likely to leave interest rates unchanged but will release its updated economic projections and “dot plot,” which shows where policymakers expect interest rates to stand this year and longer-term.


“Everybody is feeling uneasy, but the data and actions consumers are taking continue to point toward resiliency, and that tends to be overall fairly bullish,” said Oliver Pursche, senior vice president and adviser for Wealthspire Advisors in Westport, Connecticut.


According to preliminary data, the S&P 500 gained 15.02 points, or 0.28%, to end at 5,375.81 points, while the Nasdaq Composite gained 151.32 points, or 0.88%, to 17,343.84. The Dow Jones Industrial Average fell 117.47 points, or 0.30%, to 38,750.57.


Friday’s U.S. monthly jobs report was stronger than expected. Markets have dialed back expectations for the Fed’s first rate cut happening in September, now pricing in about a 50% chance, according to the CME’s FedWatch tool.


General Motors gained after the automaker announced a $6 billion share buyback plan.


Shares of GameStop tumbled for a second consecutive session on Monday, extending deep losses after stock influencer Keith Gill’s return to YouTube last week failed to spark fresh investor enthusiasm for the struggling shopping mall retailer.


Gill, known on YouTube as “Roaring Kitty,” held his first livestream in three years on Friday, the day GameStop


unveiled its second share sale in days.


A key figure behind an eye-popping rally in GameStop in 2021, Gill joked about memes and interspersed his discussion of GameStop with several disclaimers in a livestream that by Monday had over 2.4 million views on YouTube.


On Monday, GameStop shares sank about 15% to $24.06, following a dive of nearly 40% on Friday after the company reported a drop in quarterly sales.


Also on Friday, GameStop said it would sell up to 75 million shares, days after it made $933 million by selling 45 million shares.


Gill acquired 5 million shares of GameStop at an average price of $21.274, according to details he shared on social media. In addition, he bought 120,000 GameStop June 21 call options at a strike price of $20 at $5.6754 per contract. Reuters was unable to verify the size and value of his holdings.


On Monday afternoon, the options contracts were changing hands at $6.40 a contract, according to LSEG data.


Other so-called meme stocks also gave back recent gains on Monday, with AMC Entertainment losing nearly 7% and headphone seller Koss down about 4%.


Shares of GameStop nearly tripled in value over two days through May 14 after an account associated with Gill returned to X.com, formerly called Twitter. Since then, GameStop shares have given up most of those gains, and the stock remains up about 37% so far in 2024.


The videogame retailer has been losing money for years as customers shift to online purchases, and its latest quarter was no different.


U.S. stock markets, along with those in Canada and Mexico, will require share trades to be settled within one business day (T+1) from the end of May, instead of two at present, which is the norm in


“But the Dow is seen as ‘Main Street America,’ and media across this country and global media reference the Dow. It is enduring and includes companies that are part of the future. What (hitting 40,000) means is that regardless of the concerns about inflation and consumer sentiment, the companies in the Dow, which represent a cross section of our economy, continue to March higher on better earnings and stronger guidance.”

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