US Stock Market Climbs Amid Key Economic Reports and Federal Reserve Updates

The major U.S. stock indexes closed slightly higher on Monday, with cautious trading ahead of crucial consumer price data and a Federal Reserve policy announcement. Investors are also eyeing Apple's developer conference. Nvidia's stock gained after a split, while Southwest Airlines surged following a significant investment disclosure by Elliott Management.

Reuters | Updated: 11-06-2024 01:20 IST | Created: 11-06-2024 01:20 IST
US Stock Market Climbs Amid Key Economic Reports and Federal Reserve Updates
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The three major U.S. stock indexes ended slightly higher on Monday, although investors were cautious ahead of this week's consumer prices report, a Federal Reserve policy announcement and Apple's developer conference. Providing some support to the Nasdaq and S&P 500, Nvidia shares gained slightly the session after a 10-for-one stock split. Some investors now believe the chip maker might be included in the blue-chip Dow.

The Consumer Price Index report for May is due Wednesday along with the conclusion of the Fed's two-day policy meeting. The central bank, which will release updated economic and policy projections, is expected to hold interest rates steady. Investors will look for clues on when the U.S. central bank may begin to cut interest rates.

"This is an important week for the market in terms of comments and messaging from the Federal Reserve," said Quincy Krosby, chief global strategist, LPL Financial in Charlotte, North Carolina. "In addition to that, you're going see Wednesday morning the CPI report. Anything related to the economy and anything related to inflation is viewed by the market through the lens of the Federal Reserve."

Traders dialed back expectations for rate cuts in September after Friday's stronger-than-expected jobs data for May, with the odds of a reduction at 50%. "I feel like it's going to be pretty muted as people try to hedge themselves for what they might see on Wednesday," said Alex McGrath, private wealth advisor at NorthEnd Private Wealth.

Apple shares were down ahead of the iPhone maker's annual developer conference. Investors are eager for updates on how it is integrating artificial intelligence into its offerings. Among the day's gainers, Southwest Airlines jumped after activist investor Elliott Investment Management disclosed it has built up a $1.9 billion position in the company.

(Additional reporting by Lisa Pauline Mattackal and Johann M Cherian in Bengaluru; Editing by Pooja Desai and David Gregorio)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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