Stocks mixed as focus turns to inflation data


US stocks were mixed in afternoon trading on Tuesday, with techs serving as a bright spot while Wall Street kicked off a holiday-shortened week by focusing on a coming inflation report watched closely by the Federal Reserve.

The benchmark S&P 500 (^GSPC) hugged the flatline, while the tech-heavy Nasdaq Composite (^IXIC) added roughly 0.6% after solid closing gains on Friday. The Dow Jones Industrial Average (^DJI), which lists fewer tech names, slipped about 0.6%.

The major gauges are regrouping after a volatile week as traders return from the Memorial Day break. Stocks have been buffeted back and forth by two impulses: fading optimism for rate cuts on one hand, and high hopes for AI on the other. The latter is led by Nvidia (NVDA), whose shares continued a post-earnings tear, gaining about 7%.

Investors are now firmly back on inflation watch, counting down to the release of the Federal Reserve’s preferred PCE gauge on Friday. Fed officials have sent out a drumbeat of warnings that data must show real cooling in inflation to trigger a policy shift, with Neel Kashkari the latest to join them.

Read more: How does the labor market affect inflation?

Those comments, alongside hotter-than-expected economic prints and hawkish Fed minutes, have prompted traders to once again scale back bets on interest rate cuts this year. Data chasers will get updates on first quarter GDP and consumer confidence later this week that could prove catalysts.

In other individual movers, GameStop (GME) stocks soared as much as 22% on Tuesday. The games retailer on Friday said it had brought in not far off $1 billion from a share sale during the meme rally earlier in May. Meanwhile, Apple (AAPL) rose following data showing iPhone sales in China jumped over 50% in April as retail partners cut prices.

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  • UBS boosts S&P 500 year-end target to 5,600 on ‘robust’ earnings growth

    On Tuesday, UBS Investment Bank us equity strategist Jonathan Golub joined the growing list of Wall Street strategists boosting their outlook for the S&P 500 (^GSPC) this year.

    Golub boosted his year-end target to 5,600 from 5,400, citing “stronger earnings.”

    “While subsequent quarter earnings estimates typically decline during earnings season, [second quarter] estimates have also been quite robust,” Golub wrote. “A similar pattern is also evident in full-year 2024 estimates. These trends all support further market upside.”

    S&P 500 earnings grew 6% in the first quarter, and when excluding dismal earnings from Bristol Myers-Squibb (BMY), earnings grew more than 10%, per Bank of America.

    This comes as earnings for future quarters are on the rise, too. Earnings growth for the full-year 2024 and 2025 have increased since April 5, per FactSet data. Consensus now sees earnings growing 11.4% in 2024, up from 10.9% in April. In 2025, earnings growth estimates have moved up to 14.2% from the 11.6% growth seen on April 5.

  • Nvidia, GameStop, DraftKings: Stocks trending in afternoon trading

    Here are some of the stocks on Yahoo Finance’s trending ticker page in afternoon trading on Tuesday:

    Nvidia (NVDA): The stock climbed above $1,100 for the first time ever on Tuesday, on pace to close above record highs, after Elon Musk’s artificial intelligence startup xAI said it raised $6 billion in a Series B funding round. Musk said the company is in the process of building a supercomputer, which will be powered by Nvidia’s chip technology.

    GameStop (GME): Shares surged as much as 22% after the video game retailer said it raised almost $1 billion from its latest equity offering. Fellow meme darling AMC Entertainment (AMC) also capitalized on the meme frenzy by raising $250 million through the sale of 72.5 million shares earlier this month. Shares of AMC rose about 10%.

    DraftKings (DKNG): Shares dropped more than 10% after the Illinois Senate passed a bill that includes new tax hikes on sports betting. The hikes would make Illinois the second-most-expensive state for online sports gambling companies to operate in — only behind New York. Analysts warn other states could soon follow Illinois’ lead. Flutter Entertainment (FLUT, FLTR.L), the owner of FanDuel, also fell on the news, with shares down about 7%.

    Celsius Holdings (CELH): Shares plummeted 16% on Tuesday after Morgan Stanley analyst Dara Mohsenian warned in a new note to clients that year-over-year sales growth for Celsius energy drinks appears to be slowing on a sequential basis.

  • Stocks on pace for best monthly performance of 2024

    Stocks traded mixed on Tuesday to kick off a shortened holiday trading week.

    The tech-heavy Nasdaq Composite (^IXIC) led the day, up about 0.5%. The benchmark S&P 500 (^GSPC) hugged the flatline after its fifth…



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