Stock Market News Today, 5/29/24 – Indices Close Down; U.S. Economy Continues Growing –

Stock Market News Today, 5/29/24 – Indices Close Down; U.S. Economy Continues Growing –

Last Updated: 4:08 PM EST

Stock indices finished today’s trading session in the red. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 0.7%, 0.74%, and 1.06%, respectively. This comes after the Federal Reserve released its Beige Book, which provides a report of the current economic conditions in each of the 12 Federal districts in the U.S. From early April to mid-May, the U.S. economy kept growing, but the pace varied by industry and region. Most areas saw slight to modest growth, while two regions reported no change.

Retail spending was flat or up a bit as people watched their spending closely. Car sales were steady, with some manufacturers offering deals to boost sales. However, travel and tourism picked up thanks to more leisure and business travel, although the summer outlook for hospitality was mixed. In addition, manufacturing was mostly stable, except for two regions that saw declines.

Furthermore, high interest rates and tight credit made borrowing tougher. Interestingly, though, housing demand and single-family home construction rose a bit despite higher rates. Still, commercial real estate softened due to supply concerns and borrowing costs.

When it comes to the labor force, employment grew slightly, with most regions seeing slight job gains and a few seeing no change. Despite having more workers available, some industries still had shortages. Nevertheless, wage growth was mostly moderate, with some regions noting it had returned to pre-pandemic levels.

However, inflation continues to put pressure on consumers and businesses. With consumers resisting further increases, businesses saw smaller profit margins. In fact, input costs, especially insurance, continued to rise. But there are some bright spots, as some construction materials saw price drops, and manufacturing raw material costs declined in some regions.

First Published: 5:01 AM EST

U.S. futures were down on Wednesday morning after the Nasdaq Composite hit a new record high of 17,032.66 and closed 0.6% higher, supported by a 7% gain in Nvidia (NVDA) stock. Futures on the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were down by about 0.57%, 0.54%, and 0.49%, respectively, at 4:23 a.m. EST, May 29.

In after-hours action, American Airlines (AAL) stock fell over 6% as it slashed its Q2 revenue and earnings outlook. Further, CAVA Group (CAVA) declined 2.6% in after-hours trading despite reporting better-than-expected results for the first quarter of Fiscal 2024. On the other hand, Robinhood (HOOD) gained 4% on plans to buy back shares worth $1 billion.

On the earnings front, several companies are expected to report their quarterly numbers today, including Abercrombie Fitch (ANF), Bank of Montreal (BMO), Advance Auto Parts (AAP), American Eagle (AEO), Salesforce (CRM), (AI), Okta (OKTA), Stratasys (SSYS), Agilent (A), HP (HPQ) and UiPath (PATH). Moving to key economic data, no major reports are due for release today.

Meanwhile, the U.S. 10-year treasury yield was up at the time of writing, floating near 4.56%. At the same time, WTI crude oil futures trended higher, hovering near $80.34 per barrel as of the last check. 

Elsewhere, European indices opened lower today. Traders are looking ahead to the release of key inflation data for Germany later today.

Asia-Pacific Markets Traded Mixed Today

Asia-Pacific indices traded mixed today as investors were concerned about rising global bond yields and hawkish signals from the U.S. Federal Reserve. Chinese stocks traded higher after China’s growth forecast for 2024 was raised by the International Monetary Fund (IMF). This increase was attributed to strong first-quarter data and supportive policy measures.

China’s Shanghai Composite and Shenzhen Component indices gained 0.05% and 0.25%, respectively. However, Hong Kong’s Hang Seng index was down 1.83%. At the same time, Japan’s Nikkei and Topix indices closed lower by 0.77% and 0.97%, respectively.

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