Stock Market Update: S&P 500 and Nasdaq Hit Record Highs, Apple Surges

The S&P 500 and Nasdaq Composite reached new closing records on Tuesday, with Apple leading the charge as the tech giant surged to an all-time high. The S&P 500 rose by 0.27% to close at 5,375.32, while the Nasdaq Composite gained 0.88% to end at 17,343.55, both hitting fresh all-time highs during the day. However, the Dow Jones Industrial Average lost 120.62 points, or 0.31%, closing at 38,747.42.

Investors seemed to be taking profits in Nvidia, a prominent artificial intelligence company, and shifting their focus to Apple, which unveiled new features that could drive a wave of iPhone upgrades. Apple’s stock soared nearly 7.3% to hit a record high, its first since last December, while Nvidia saw a 0.7% decline.

The Federal Reserve kicked off its two-day policy meeting on Tuesday, with a decision on interest rates and a press conference featuring Fed Chair Jerome Powell scheduled for Wednesday. Despite some signs of a slowing economy, investors are skeptical that the Fed will cut rates in 2024, especially after a stronger-than-expected May jobs report.

JPMorgan’s top equity strategist, Marko Kolanovic, noted that the chances of a rate cut have diminished following the jobs report, pushing back expectations for the first cut to November. Fed funds futures currently show no chance of a cut at this week’s meeting or the next one in July, but there is a 66% probability of a cut in November.

As investors brace for a potentially hawkish message from the Fed, the focus will be on the dot plot and economic projections. The consumer price index reading for May will also be closely watched before the Fed’s decision on Wednesday. Overall, the market is preparing for a shift in Fed policy, with expectations leaning towards a delay in rate cuts.