Reply To: Traders Market Weekly: Cracks Widen in China and Emerging Markets


The Dow Jones Industrial Average closed more than 200 points lower today while the Nasdaq Composite (+0.6%) closed at a fresh record high, above 17,000 for the first time, thanks to a late surge of buying activity in mega cap stocks.

This price action also left the S&P 500 little changed from yesterday, but the index had been down as much as 0.4% earlier.

NVIDIA (NVDA 1139.01, +74.32, +7.0%) provided some support to the broader market today due to the notion that xAI’s $6 billion capital raise will benefit the AI chipmaker.

Other top performing mega caps that participated in the afternoon move higher included Amazon (AMZN 182.15, +1.40, +0.8%) and Meta Platforms (META 479.92, +1.70, +0.4%).

Apple (AAPL 189.99, +0.01, +0.01%) had been trading up as much as 1.6% at its high, but shares were left out of the late surge.

The information technology sector was one of only three S&P 500 sectors to close with a gain, benefitting from the upside move in NVDA and gains in other mega caps.

The activity in Treasuries kept pressure on equities through the session.

The 2-yr note yield settled three basis points higher at 4.98% and the 10-yr note yield rose eight basis points today to 4.54%.

This price action was in response to a stronger-than-expected Consumer Confidence report for May, and today’s $69 billion 2-yr note and $70 billion 5-yr note sale, which met weak demand.

Nasdaq Composite: +13.4% YTD
S&P 500:+11.2% YTD
S&P Midcap 400: +6.3% YTD
Dow Jones Industrial Average: +3.1% YTD
Russell 2000: +2.0% YTD