The S&P 500 experienced mixed performance, with most stocks trading lower but some showing gains. Concerns about a slowing economy impacted financial stocks like American Express and JPMorgan Chase, while Tesla’s shares dropped ahead of a vote on CEO Elon Musk’s pay package. Apple, however, saw a 3.5% increase in its shares.
Fourteen stocks in the S&P 500 hit new 52-week highs, including Costco, Eli Lilly, and Apple, while four stocks hit new lows. Affirm’s shares surged after announcing an integration with Apple Pay, and General Motors saw a 1.7% increase following a stock repurchase program approval.
Major banks and rate-sensitive growth stocks experienced declines, pushing the broader banking index to a seven-week low. Ten of the S&P 500 sectors saw losses, with energy, utilities, and financials particularly affected. The Russell 2000 Index also dropped by 1%.
The Federal Reserve’s interest rate policy decision is awaited, with a stronger-than-expected May jobs report reducing the likelihood of rate cuts in 2024. Barclays suggests that equities may rise if the market rally broadens, supported by better fundamentals post-1Q24 earnings.