On Tuesday, the S&P 500 Index rose by 0.79%, the Dow Jones Industrial Average increased by 0.26%, and the Nasdaq 100 gained 1.68%, marking a one-week high for both the S&P 500 and Nasdaq 100. This upward trend followed a strong performance on Monday, spurred by demand for technology stocks, particularly in the semiconductor sector. The market anticipates a robust Q2 earnings season, with forecasts indicating a potential 23% increase in earnings, largely driven by artificial intelligence investments.
Key economic indicators added to the positive market sentiment as the May JOLTS job openings unexpectedly rose by 9,000 to a two-year high of 7.594 million, contrary to expectations of a decline. Additionally, the April S&P CoreLogic Case-Shiller home price index showed a year-over-year increase of 1.14%, surpassing expectations of 0.90%. In contrast, the Conference Board’s June consumer confidence index rose 0.6 to 91.2, falling short of the expected 94.4.
On the global front, China’s June manufacturing PMI rose to 50.3, indicating slight expansion, while its non-manufacturing PMI also unexpectedly increased to 50.2. U.S. markets are currently pricing a 32% chance of a 25 basis point rate hike at the next Federal Reserve meeting on July 28-29.
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