By admin Jun, 13, 2024 Finance

1. Market Rally on Fed Optimism:

• The S&P 500 surged 0.85% to close above 5,400 for the first time.
• The Nasdaq Composite climbed 1.53%, reaching a new record high.
• The Dow Jones Industrial Average slightly dipped by 0.09%.
• Investors were buoyed by the Federal Reserve's acknowledgment of "modest further progress" toward its 2% inflation target, despite no change in interest rates.

1. Federal Reserve and CPI Insights:

• The Federal Reserve indicated only one rate cut is expected before the end of the year, a reduction from the three cuts projected in March.
• The key interest rate remains unchanged at 5.25%-5.5%.
• The consumer price index (CPI) for May showed no increase month-over-month but a 3.3% rise year-over-year.
• Fed Chair Jerome Powell emphasized ongoing caution, stating that current conditions don't justify loosening policy.

1. Broadcom's Strong Performance and Stock Split:

• Broadcom exceeded earnings expectations for its second fiscal quarter and raised its annual sales forecast.
• The company announced a 10-for-1 stock split, effective July 15, causing a 13% jump in premarket trading.
• Broadcom's AI product sales significantly contributed, with $3.1 billion in revenue for the quarter.

1. Sony Acquires Alamo Drafthouse:

• Sony Pictures acquired the dine-in movie theater chain Alamo Drafthouse, marking the first major studio purchase of a theater chain since a 2020 rule change.
• Alamo Drafthouse, the seventh-largest chain in North America, emerged from Chapter 11 bankruptcy in 2021 with private equity backing.

1. GameStop Trading Volatility:

• GameStop shares experienced a significant sell-off, coinciding with high trading volume in call options associated with Keith Gill, known as "Roaring Kitty."
• Speculation arises whether Gill is behind the sell-off, as he last disclosed his position on Monday.
• With 93,266 call contracts traded, questions remain about Gill's ability to exercise these options set to expire on June 21.
• GameStop’s annual meeting is scheduled for Thursday morning, adding to the trading activity.

Tags: stock market stock market holiday

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