The Dow Jones Industrial Average (DJIA) attempted a meager recovery on June 14, 2024, but continued to struggle near its lows. The market confidence remained half-hearted after the University of Michigan's Consumer Sentiment Index declined to a six-month low and missed a recovery. The index dropped to 65.6 in June, falling from the previous 69.1 and well below the forecasted uptick to 72.0. This decline reflects consumers growing increasingly fearful about the state of the US economy. Additionally, the UoM's Consumer Inflation Expectations ticked back up to 3.1%, indicating that price growth continues to weigh on consumers' economic outlook. As a result, two-thirds of the Dow Jones' constituent securities were in the red on June 14, 2024, as sentiment tilted lower [68084056].
Despite the cautious tone from the Federal Reserve, rate markets are still pricing in hopes for a September rate cut. Rate traders are currently pricing in nearly 70% odds of at least a quarter-point rate trim from the Fed at the September 18 rate decision, according to the CME's FedWatch Tool [68084056].
On June 21, 2024, the Dow Jones Industrial Average remained flat as investors reacted to better-than-expected US Purchasing Managers Index (PMI) figures for June. The S&P Global Manufacturing PMI rose to 51.7 from the previous month's 51.3, while the Services component increased to 55.1, its highest print since May 2022. However, US investors were hoping for a decline in PMIs to push the Federal Reserve (Fed) towards rate cuts. Despite the positive PMI data, markets continue to anticipate a rate cut in September, with rate traders pricing in around 65% odds of at least a quarter-point rate trim at the Federal Open Market Committee's (FOMC) September 18 rate decision [e72972da].
In terms of individual stocks, Salesforce Inc. (CRM) led the scant gainers on the Dow Jones on June 14, 2024, climbing 1.3% to $232.00 per share. On the other hand, Boeing Co. (BA) declined by -2.06% on the same day, falling below $55.00 per share. On June 21, 2024, McDonald's Corp. (MCD) led the gainers, climbing 2.4% to $260.00 per share, while JPMorgan Chase & Co. (JPM) and Goldman Sachs Group Inc. (GS) fell back around 1.25% each. The Dow Jones remained flat, struggling to regain momentum and reclaim 39,200.00. The index briefly set a fresh peak for the week near 39,260.00 before returning to the day's opening range [e72972da].
