Wall Street saw a slight decline on Tuesday, with the S&P 500 falling 0.3% and the Dow Jones Industrial Average dipping 0.1%. The Nasdaq composite also fell by 0.4%, with stock indexes experiencing a modest drop since reaching an all-time high. Big Tech stocks like Tesla and Alphabet helped keep the indexes higher for most of the day, but a late slide by Nvidia ultimately pulled the market lower. Krispy Kreme saw a significant increase, rising 39.4% after announcing a deal with McDonald’s to sell its doughnuts nationwide.
McCormick, a seller of spices and seasonings, climbed 10.5% after reporting better-than-expected profits for the latest quarter. Trump Media & Technology Group also made waves, jumping 16.1% on its first day of trading under its new ticker, “DJT.” The company, which is associated with former President Donald Trump, has received criticism for its soaring stock price, driven by anticipation of Trump’s potential run for the White House. Truth Social, the company’s main asset, is losing money and faces competition from better-established rivals.
While the overall U.S. stock market is facing concerns about being overvalued, the S&P 500 has already risen by 9% this year and is on track for its fifth consecutive winning month. The U.S. economy has shown resilience despite high interest rates aimed at controlling inflation. Federal Reserve plans to start lowering interest rates will further support the market, along with strong stock buybacks by corporate clients. However, concerns about inflation persist, with some reports coming in higher than expected. The Federal Reserve is expected to begin cutting interest rates in June, with the possibility of starting at its upcoming meeting.
In the bond market, Treasury yields slipped following mixed economic reports, including a rise in orders for durable goods and a decrease in consumer confidence. Despite concerns about inflation and economic growth, solid spending by U.S. consumers has helped prevent a recession. Stock markets in Europe and Asia were mostly higher, reflecting positive sentiment in global markets. The yield on the 10-year Treasury fell to 4.22%, while the two-year yield, which reflects Fed expectations, decreased to 4.58%. The overall outlook for the market remains positive, with expectations of further Federal Reserve rate cuts to support economic growth.
