Mid-Week Market Minute 6.26.24

Market Updates

Home Prices Report; Key Economic Data on Friday

Stocks were mixed in early trading this week as investors await key economic data later this week. Shares of market favorite Nvidia (NVDA) are essentially flat on the week despite a tremendous amount of volatility. After falling more than 6% on Monday, shares of the AI chip giant rallied 6.7% on Tuesday, which represents an approximately $200 billion swing in market capitalization over the course of one trading day. For reference, there are only about 30 companies in the S&P 500 index with a total market capitalization of more than $200 billion, putting into perspective the sheer size of these mega-cap tech stocks.

On the data front, home prices hit another record in April as the Case-Shiller Home Price Index showed prices rose 6.3% in April compared to a year ago. This represents a nearly 50% increase in home prices since 2020, with the median sale price now more than five times higher than the median income. Looking ahead to the rest of the week, investors will keep a close eye on Personal Consumption Expenditure (PCE) data due on Friday. This is the Fed’s preferred measure of inflation, and Core PCE is expected to fall from 2.8% in April to 2.6% in May, while headline PCE is expected to fall from 2.7% in April to 2.6% in May. Separately, Thursday morning will bring the final estimate of GDP growth for the first quarter of this year. After being revised lower to 1.3% last month, economists now expect the final estimate to come in at 1.4% annualized.

Source: GSAM, CNBC, JPMorgan

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