Markets Notch Gains in Reaction to Major Reports:
Stocks notched solid gains last week, driven largely by the Fed’s latest rate decision, May’s inflation report, and Apple’s AI-related news.
The S&P 500 Index rose 1.58%, while the Nasdaq Composite picked up 3.24%. The Dow Jones Industrial Average, which has lagged most of the year, slid 0.54%. The MSCI EAFE Index, which tracks developed overseas stock markets, fell 1.44% for the week through Thursday’s close.1
![](https://concordassetmgmt.com/wp-content/uploads/2024/06/CAM_MMU_6.18.24_Graph-1-e1718747200185.png)
Source: Charles Schwab & Co., Inc
S&P 500, Nasdaq Lead; Dow Lags
Market leadership took a familiar form. The tech-heavy Nasdaq led while the Dow trailed for the second week (and four out of the past six weeks).2
Stocks trended higher at the start of the week as investors cheered an artificial intelligence update from Apple.3,4
By midweek, the market had split, with the Nasdaq and S&P 500 moving higher while the Dow lagged. Investors were upbeat after learning that consumer prices rose less than expected in May and that the Fed decided to keep rates steady. However, some investors were unsettled after learning Fed officials had shifted their outlook and now only penciled in a single rate cut between now and year-end. A few months ago, the Fed had indicated as many as three cuts were possible.5
![](https://concordassetmgmt.com/wp-content/uploads/2024/06/CAM_MMU_6.18.24_Graph-2.png)
Source: Charles Schwab & Co., Inc
Busy Week for News
Last week was chock full of market-moving events. Between Apple’s AI update, inflation, and the Fed, it was a toss-up which one influenced sentiment the most.
AI’s outsized role in driving market momentum continued last week. OpenAI’s deal with Apple arrived at the start of last week, and the news followed OpenAI’s deal earlier this year with Microsoft. Please note that these companies are mentioned for illustrative purposes only; it is not a recommendation to buy, sell, or hold this or any security.6
Wednesday morning, the Consumer Price Index (CPI) was announced. A few hours later, the Federal Open Market Committee updated its monetary policy. Those pieces of news have only arrived together 13 times since 2008.
The FOMC kept rates steady at the current 5.25-5.50 percent target range, a widely expected decision. However, the tame CPI report caused some volatility as investors grappled with how the report may influence Fed policy.7,8
This Week: Key Economic Data
![](https://concordassetmgmt.com/wp-content/uploads/2024/06/CAM_MMU_6.18.24_Graph-3-e1718747319365.png)
Source: Bloomberg Finance L.P.
This Week: Companies Reporting Earnings
![](https://concordassetmgmt.com/wp-content/uploads/2024/06/CAM_MMU_6.18.24_Graph-4.jpg)
Source: EarningsWhispers
At Concord Asset Management, we design portfolios for the long run, with the ability to navigate various market cycles. However, you can have confidence that we are monitoring these market-moving events, and we will make reasonable, tactical adjustments as necessary.
Author
![](https://concordassetmgmt.com/wp-content/uploads/2024/01/Gary-Aiken-Headshot-Website.png)
Gary Aiken
Chief Investment Officer
Concord Asset Management
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Footnotes and Sources
1The Wall Street Journal, June 14, 2024
2The Wall Street Journal, June 14, 2024
3The Wall Street Journal, June 10, 2024
4CNBC.com, June 12, 2024
5The Wall Street Journal, June 10, 2024
6The Wall Street Journal, June 10, 2024
7The Wall Street Journal, June 10, 2024
8MarketWatch.com, June 10, 2024
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