Caution and mixed trend ahead of 'Big Week'…S&P and Nasdaq break new records again [New York Stock Briefing]

Tesla and Nike rise over 3%

The three major indices of the New York Stock Exchange closed mixed around the flatline. Caution was evident ahead of big tech companies' earnings releases and the regular meeting of the Federal Open Market Committee (FOMC).

On the 28th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 44,837.56, down 64.36 points (0.14%) from the previous day. The S&P 500 Index rose 1.13 points (0.02%) to finish at 6,389.77, while the tech-heavy Nasdaq Composite added 70.27 points (0.33%) to end at 21,178.58.

On this day, both the S&P 500 and Nasdaq again set closing record highs. The S&P 500 and Nasdaq have posted gains for six and four consecutive trading days, respectively.

Early in the session, the New York market mainly hovered in a firm range despite the US–European Union (EU) trade agreement and the possibility of a US–China tariff truce extension. However, as the session progressed, caution regarding the approaching 'Big Week' increased, and earlier gains were pared back.

With earnings announcements from big techs such as Microsoft, Meta Platforms, Apple, and Amazon imminent, investor attention is focused on the results of the two-day FOMC regular meeting starting on the 29th.

Additionally, this week will see the release of the Personal Consumption Expenditures (PCE) Price Index and the July employment report, among other significant economic indicators.

Chris Larkin, Head of Trading at Morgan Stanley E*TRADE, analyzed, "The market will experience its busiest week this week" and added, "Short-term momentum in the stock market could be determined."

There was also a sense of burden as both the S&P 500 and Nasdaq reached record highs daily in recent sessions. The S&P 500, which had gained for five straight sessions, even broke through the 6,400 level for the first time intraday, but as caution prevailed, it turned downward.

Adam Turnquist, Chief Technical Strategist at LPL Financial, stated, "Looking at the historical returns after five consecutive record closes, it suggests that prices may pause (adjust) before further gains."

By sector, energy rose the most at 1.15%. This was attributed to the EU's agreement to purchase $75 billion worth of US energy over the next three years as a result of the trade deal with the US.

Technology and consumer discretionary sectors climbed 0.77% and 0.69%, respectively. In contrast, real estate (-1.75%), financials (-0.67%), utilities (-1.05%), health (-0.83%), and materials (-1.75%) declined.

NVIDIA topped $176 per share, up 1.87%. Tesla surged 3.02% after signing a foundry contract worth $16.5 billion with Samsung Electronics.

Amazon (0.58%), Meta Platforms (0.69%), Apple (0.08%), Microsoft (-0.24%), and Alphabet Inc. (Class A, -0.31%) finished mixed. Nike (Nike Inc. (Class B)) soared 3.89% after JPMorgan suggested an 'overweight' rating.

Shares of Opendoor Technologies, a real estate startup and 'meme stock' that has recently soared, tumbled 7.87% after the company announced it would postpone its special shareholder meeting to the end of August.

Cheniere Energy Partners, a liquefied natural gas (LNG) exporter, rose 1.38% on news of the EU's energy purchases.

According to the Chicago Mercantile Exchange (CME) FedWatch Tool, the probability that the Fed will cut rates by 0.25 percentage points by September stands at 61.7%.

The Chicago Board Options Exchange (CBOE) Volatility Index (VIX) added 0.10 point (0.67%) to close at 15.03.

Jiseong Koh, Hankyung.com Reporter jsk@hankyung.com