Stock market today: Stock rally fizzles after more cool inflation data, Tesla rises ahead of Musk pay decision

7 months ago

US stocks slipped on Thursday, with the S&P 500 just off its record high as investors weighed the two-way pull of cooling inflation and a Federal Reserve pullback on interest rate cuts.

The S&P 500 (^GSPC) fell 0.2% after the benchmark topped 5,400 to close at a fresh all-time high. The Nasdaq Composite (^IXIC) erased earlier session gains to hover near the flatline on the heels of taking out a record of its own, as tech stocks led the broader charge higher. But the Dow Jones Industrial Average (^DJI) headed lower, down 0.7%.

Stocks notched records on a dramatic day that brought a double dose of market-moving events: A lower-than-expected consumer inflation print and the Fed's outlook for rates.

But policymakers' shift from three rate cuts this year to just one didn't appear to faze investors, given Chair Jerome Powell's reminder that the projection isn't set in stone. Traders are still pricing in two rate cuts starting in September, according to the CME FedWatch tool.

The producer price index for May fell in what appears to be the latest sign that inflation is easing. The reading dropped 0.2% month-over-month after rising 0.5% in April.

Also looming large is the Tesla (TSLA) shareholders' vote on whether to approve a $56 billion pay package for its CEO Elon Musk, a measure which some big investors were against. Overnight Musk said the compensation and the EV maker's move to Texas have been passed "by wide margins." Tesla stock jumped about 4% on Thursday.

Meanwhile, a jump in Broadcom (AVGO) shares lifted the spirits of a market looking to AI and techs to fuel a rally. The chipmaker, a key supplier to Apple (AAPL), is on track for its biggest gain since 2020 after upbeat results boosted by AI demand.

Live6 updates

Thu, June 13, 2024 at 9:50 AM MST
Trending tickers on Thursday
Tesla (TSLA)
Tesla stock popped 4% on Thursday as investors awaited a vote on CEO Elon Musk's $56 billion pay package.
Broadcom (AVGO)
Broadcom stock hit new highs after the chip maker posted more-than-promising fiscal second-quarter earnings results. The company also announced a 10-for-1 stock split.
Super Micro Computer (SMCI)
Super Micro Computer occupied the # 2 slot on Yahoo Finance' s Trending Tickers page on Thursday as shares jumped about 10%.
The provider of servers and storage systems for data centers has been riding high on increased demand amid an AI craze. The stock is up almost 200% year-to-date.
Thu, June 13, 2024 at 9:05 AM MST
Takes from 3 Tesla shareholders: Unenthusiastic yes to unequivocal no as Musk awaits vote on his pay
Yahoo Finance's Yasmin Khorram reports:
Tesla (TSLA) shareholders are answering a $56 billion question today at their annual meeting: Should Elon Musk's record pay package be reinstated after a Delaware judge struck down a previous one?
“I’m voting yes unenthusiastically; I’m voting yes out of principle,” early investor Ibrahim AlHusseini told Yahoo Finance. Personal feelings aside, he said Tesla should honor the 2018 package that was tossed.
“That was the deal. Elon hit the milestones, so he should get his compensation.”
AlHusseini, founder of VC firm FullCycle, invested in the electric vehicle company in a Series C funding round in 2006. AlHusseini said he steadily sold off a majority of his position in the decade that followed.
"We rode the shares through a trillion-dollar valuation. A lot of wealth got created, and his compensation was set by the board,” AlHusseini added, though he thinks most of his peers will vote no this time.
But retail investors currently own around 40% of Tesla stock, and Musk claims they support his pay. Last weekend, the billionaire posted on X, formerly known as Twitter, that “roughly 90% of retail shareholders who have voted” have voted in favor of the package, adding that “public sentiment is unequivocally supportive.”
Tesla shares were up 4% on Thursday.
Read more here.
Thu, June 13, 2024 at 8:48 AM MST
Bitcoin sinks 4% to hover at $66,500 per token
Bitcoin (BTC-USD) fell more than 4% on Thursday to hover near its June low. The cryptocurrency traded at around $66,500 per token at 11:45 a.m ET.
Crypto-related stocks were also sliding.
Coinbase (COIN) fell 4% while MicroStrategy (MSTR) dropped more than 6%. Crypto miner Marathon Digital (MARA) also slipped 4%.
Thu, June 13, 2024 at 8:00 AM MST
Tax cuts vs 'direct investments': Trump and Biden make dueling pitches to business leaders
Yahoo Finance's Ben Werschkul reports:
Both the Trump campaign and the Biden administration are offering an outreach to the business world Thursday with dueling events that crystallize their different promises to corporate America should they win the election.
Both are in a sense offering carrots, just of a different flavor.
Donald Trump, who is set to meet Thursday morning with a group of prominent CEOs in Washington DC, is supremely focused on tax cuts as well as cutting government regulations.
The promise from Biden's team is that a second term would be focused, as Treasury Secretary Janet Yellen is set to say in a Thursday speech to New York business leaders, on "public interventions to create a supportive environment for business and fuel private sector investments."
It remains to be seen which approach resonates with both the overall business community and with the public at large.
But many CEOs have signaled a close focus on taxes in the coming year ahead of the expiration of key provisions in the 2017 Trump tax cuts coming at the end of 2025.
Read more here.
Thu, June 13, 2024 at 7:20 AM MST
Nvidia and Broadcom touch new highs
Nvidia (NVDA) shares gained as much as 3% on Thursday to touch new all-time intraday highs after peer chipmaker Broadcom (AVGO) posted upbeat quarterly results boosted by AI demand.
Broadcom also announced a 10-for-1 stock split, sending shares to record highs on Thursday. The key supplier to Apple (AAPL), is on track for its biggest gain since 2020.
Thu, June 13, 2024 at 6:32 AM MST
S&P 500, Nasdaq inch higher as Tesla pops 5%
The Nasdaq and S&P 500 held near record highs on Thursday as investors digested the Federal Reserve's inclination to cut rates only one time this year while tech shares gained.
The S&P 500 (^GSPC) edged up 0.2% after the benchmark topped 5,400 to close at a fresh all-time high. The Nasdaq Composite (^IXIC) popped 0.6% on the heels of taking out a record of its own, as tech stocks led the broader charge higher.
The Dow Jones Industrial Average (^DJI) edged lower, down 0.3%
Tesla (TSLA) shares opened 5% higher after Elon Musk indicated two important shareholder votes, one of which included his $56 billion pay package, had passed "by wide margins."
The Federal Reserve hinted at just one rate cut later this year, pulling back the market's expectation of at least two reductions. The Federal Open Market Committee (FOMC) held rates unchanged on Wednesday after its two-day meeting. The decision came on the heels of the latest Consumer Price Index which signaled cooling inflation for the month of May.