On June 12, 2024, Apple made a significant impact on Wall Street by breaking records and surpassing Nvidia. The Apple share saw a 7.2% gain, leading to an additional capitalization of $205 billion and reaching a new all-time high of $207. This impressive performance caused a stir on Wall Street, with new intraday and closing record highs for both the Nasdaq and Nasdaq-100, which rose by 0.88% and 0.7% respectively. The S&P 500 also experienced a 0.27% increase, closing at 5,375.
Despite a majority of stocks declining, both the Nasdaq and S&P broke annual records, with the Nasdaq surpassing the +15% annual barrier for the 13th time and the S&P hitting its 30th annual record high. However, the Dow Jones closed down by -0.3%, influenced by declines in Boeing and JP Morgan by -2.5%.
In addition to the stock market records, there was a positive development in US yields at the end of the session, with the ’10-yr’ dropping by -7pts to 4.400%, the ’30-yr’ by -6pts to 4.5300%, and the ‘2-yr’ by -5pts to 4.8300%. This display of confidence from Wall Street comes ahead of the Federal Reserve’s monetary policy decision, where it is expected that rates will remain at 5.25/5.50.
While there is no suspense surrounding the rate decision, the Fed’s comments on inflation could impact hopes of a rate cut in September. Currently, only 47% of experts believe in this possibility, down from 70% the previous week. The Federal Reserve’s summary of economic projections may reveal a reduction in rate cut forecasts for the year.
Before the Fed’s decision, the release of consumer prices may indicate the pace of inflation, potentially limiting the central bank’s ability to lower rates. If the Fed remains vigilant on inflation, Wall Street may see a period of consolidation.
Overall, the performance of Apple on Wall Street has been remarkable, setting new records and driving market sentiment. Despite some fluctuations in the market, investors are eagerly awaiting the Federal Reserve’s decision and its impact on future economic policies.