Stock indexes saw a mixed day of trading with Apple and big tech companies boosting the Nasdaq while financials struggled under the weight of uncertainty surrounding the Federal Reserve. Apple’s stock soared 7.3% after unveiling its custom intelligence system, Apple Intelligence, at the WWDC keynote. Microsoft also saw a 1.1% increase amid questions about its partnership with OpenAI. Boeing, on the other hand, fell 2.5% due to a decline in deliveries and orders in May.
In the S&P 500, General Motors rose 1.4% after authorizing a $6 billion share buyback program. Tech and communications giants like Meta and Alphabet also saw gains, while Paramount Global tumbled 7.9% after merger talks fell through. Financial stocks lagged behind as uncertainties about monetary policy loomed ahead of the Fed’s decision.
In the Nasdaq 100, CrowdStrike continued to climb after a strong earnings report, while PayPal slid 3.5% following Apple’s announcement of integrating Affirm with Apple Pay. Starbucks also saw a 2.1% decline as it introduced its “Pairings Menu.”
Meanwhile, a strong Treasury auction led to a bond rally as Treasury yields declined sharply. The surprising demand for fresh U.S. debt signaled optimism despite upcoming reports on CPI and the Fed’s interest rate decision.
Affirm Holdings’ stock received a boost after Apple announced its partnership to offer buy now, pay later loans through Apple Pay. Despite the positive news, Affirm shares were still down 33% in 2024.
Overall, the stock market experienced various movements with companies like Apple, General Motors, and CrowdStrike making significant gains, while others like Boeing and financial stocks faced challenges. Bond markets responded positively to the strong Treasury auction, indicating resilience in the face of economic uncertainties.