Today, investors' attention is focused on the anticipated minutes of the Federal Reserve's June meeting. It is reported that the discount rate will remain at the level of 5-5.25% per annum. Also, on Friday, traders are anticipating fresh data on the American labor market. Experts predict a decrease in unemployment to 3.6% and an increase in the number of jobs in the non-agricultural sector by 225 thousand after a rise of 339 thousand in May.
Paul Krugman, in his review, praised the US economic strategy. He emphasized the importance of success in the fight against poverty, highlighting an improvement in the so-called poverty index. Krugman also paid tribute to the efforts of the Biden administration, noting the reduction of the combined inflation and unemployment index to the level of early 2021.
Contrary to the pessimists' predictions of a possible stock market crash and overall economic downturn, no problems have occurred, Krugman asserts. On the contrary, over the past year, the US economy has delighted with the addition of four million jobs and maintaining unemployment at nearly a 50-year low.
Even inflation, which peaked at 9% in mid-2022, began to retreat and fell to 4% in May. The labor market, despite the Federal Reserve's aggressive policy of raising interest rates, demonstrates resilience. In May, the US economy added another 339,000 jobs, with unemployment maintaining a stable mark at 3.7%.
At the close of trading in New York, the major indices showed a slight decline: Dow Jones fell by 0.38%, S&P 500 lost 0.20%, and NASDAQ Composite declined by 0.18%. Overall, despite the correction in the markets, the US economy continues to strengthen, which questions the pessimistic forecasts.
Dynamics of stocks on Dow Jones and S&P 500: winners and outsiders of the day
American stock markets closed today with mixed dynamics. Despite the overall decline in indices, some stocks showed significant growth.
Among the Dow Jones components, the most successful were shares of the aircraft construction company Boeing Co (NYSE:BA), which rose by 1.13% and reached a mark of 213.31 dollars. They are followed by Salesforce Inc (NYSE:CRM) shares, which added 1.03% and closed at 213.82 dollars. Walgreens Boots Alliance Inc (NASDAQ:WBA) shares ended the trading at 29.26 dollars, having grown by 0.83%.
However, not all companies can boast such results. Intel Corporation (NASDAQ:INTC) shares lost 3.3%, dropping to 32.51 dollars. 3M Company (NYSE:MMM) shares grew by 2.48% and closed at 98.63 dollars, but Goldman Sachs Group Inc (NYSE:GS) shares became cheaper by 2.01%, ending the trade at 320.05 dollars.
Leading the growth among the S&P 500 index components were PG&E Corp (NYSE:PCG) shares, which rose by 3.13% to 17.82 dollars, Fidelity National Information Services Inc (NYSE:FIS) shares, which grew by 3.10% and closed at 59.80 dollars, and SBA Communications Corp (NASDAQ:SBAC) shares, which rose by 2.97% and closed trading at 240.97 dollars.
On the other hand, shares of Generac Holdings Inc (NYSE:GNRC) fell by 8.05% and closed at 138.48 dollars, shares of Las Vegas Sands Corp (NYSE:LVS) lost 5.62% and ended the day at 55.30 dollars, and shares of Qorvo Inc (NASDAQ:QRVO) fell by 5.36% and closed at 97.59 dollars.
Thus, despite the overall negative market dynamics, some companies demonstrated resilience and even growth.
Stock dynamics on NASDAQ Composite: winners and outsiders of the day
As a result of today's trading on the NASDAQ Composite, the leaders in growth were shares of Mullen Automotive Inc (NASDAQ:MULN), which rose by 69.38% and closed at 0.17 dollars. BioXcel Therapeutics Inc (NASDAQ:BTAI) shares also rose significantly, gaining 42.26% and ending the session at 11.21 dollars, and shares of Impel Neuropharma Inc (NASDAQ:IMPL), which rose by 36.35% and ended the trade at 1.70 dollars.
However, not all companies were able to demonstrate similar success. Shares of Canopy Growth Corp (NASDAQ:CGC) fell in price by 22.19% and closed at 0.46 dollars. Shares of Connexa Sports Technologies Inc (NASDAQ:CNXA) lost 21.09% and ended the session at 0.21 dollars. Quotes for AXT Inc (NASDAQ:AXTI) fell by 19.09% to a mark of 2.84 dollars.
In summary, on the New York Stock Exchange, shares of more companies fell in price: 2074 against 890, which rose in price. On the NASDAQ stock exchange, the number of falling shares (2262) also exceeded the number of rising ones (1278), while the prices of shares of 135 companies remained unchanged.
Nevertheless, shares of PG&E Corp (NYSE:PCG) showed notable growth, reaching a 3-year high and rising by 3.13% to a mark of 17.82 dollars.
At the same time, the CBOE Volatility Index, formed based on the indicators of options trading on the S&P 500, increased by 3.50% to 14.18. This points to increasing market uncertainty, as volatility usually increases in periods of economic instability or uncertainty.