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Stock Market Today: S&P500 wraps up third weekly win despite slip on Nvidia wobble

Published 21/06/2024, 11:14
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Investing.com -- The S&P 500 wrapped up its third-weekly win Friday despite closing closer after Nvidia took a breather from its recent melt-up.

By 16:00 ET (20:00 GMT), the Dow Jones Industrial Average was up 15 points, or 0.04%, S&P 500 closed 0.1%, lower, while NASDAQ Composite fell 0.2%.

Nvidia drops to third most valuable company 

NVIDIA Corporation (NASDAQ:NVDA) fell 3%, snapping an eight week win streak, as investors appeared to take profits on the chipmaker's runaway rally that had seen it briefly usurp Microsoft (NASDAQ:MSFT) as the most valuable company on Tuesday.  

Nvidia was valued at 3.14 trillion in recent trading, just shy of Apple (NASDAQ:AAPL)'s $3.23 and Microsoft's $3.33T valuations. 

Despite the blip in Nvidia, the general enthusiasm around the applications of artificial intelligence should mean that underlying demand for the stock remains strong.

Boeing reportedly closing in on deal to buy Spirit Aerosystems; Carmax in earnings delight  

Boeing (NYSE:BA) stock edged higher after Reuters reported that the aircraft manufacturer is on the verge of agreeing to repurchase Spirit Aerosystems, its former subsidiary, which soared over 5%.

Boeing began negotiations to repurchase one of its major suppliers, which it had spun off in 2005, earlier in this year, but ran into difficulties due to Spirit's work for Boeing’s main rival Airbus. 

The European group had threatened to obstruct any deal that involved Boeing manufacturing parts for its latest models. 

CarMax (NYSE:KMX) stock closed just above the flatline after the used vehicle retailer’s first-quarter profit came in stronger-than-expected, even after dropping 33%, while its sales missed estimates.

Asana Inc (NYSE:ASAN) closed more than 15% higher after the software maker unveiled a $150M share buyback plan.

Manufacturing, services activity surprise to upside in June

The second manufacturing and services purchasing managers’ index readings for June came in higher than economists had expected, underscoring strength in the economy and sooner rather than later rate aren't a matter of urgency. Existing home sales data for May also topped economists forecasts. 

A series of Fed officials have expressed caution about expecting rate cuts too soon, seeking more evidence that inflation has been tamed before the central bank would agree to easing monetary policy.

Thomas Barkin, President of the Federal Reserve Bank of Richmond, emphasised the point on Thursday, stressing the need for further clarity on the inflation path before considering lowering interest rates.

"My personal view is let’s get more conviction before moving,” Bakin told reporters following an event in Richmond on Thursday.

Volatility eyed as 'triple witching' beckons

Stocks are expected to have a wild end to the session as triple witching -- when stock options, stock index futures, and index option contracts expire on the same day -- usually stokes volatile as investors move out of old positions and take new ones.

Peter Nurse contributed to this story

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