Treasury yields continued to climb after surging Friday following a stronger-than-expected jobs report that raised doubts about the timing of Fed interest rate cuts. Yields edged higher with the 10-year treasury rising about 4 basis points to trade near 4.47%.
At closing bell, the Dow Jones Industrial Average index advanced 69.05 points, or 0.18%, to 38,868.04. The S&P500 index added 13.80 points, or 0.26%, to 5,360.79, new record closing highs. The tech-heavy Nasdaq Composite index increased by 59.40 points, or 0.35%, to 17,192.53, new record closing highs.
Total 8 of 11 S&P500 sectors ended higher along with gain in the S&P500 Index. Utilities sector was top performers, rising 1.27%. Financial sector was bottom performer, falling 0.39%.
Shares of General Motors gained 4% after the United Auto Workers union reached a tentative contract agreement with GMs electric vehicle battery venture Ultium Cells.
Apples shares fell nearly 2% after it unveiled Apple Intelligence, its custom artificial intelligence system built into the newest iPhone, iPad, and Mac operating systems. Apple is positioning Apple Intelligence as a unique offering that can understand you and your data, rather than a broad-based AI system like ChatGPT or Google's AI Overview.
Huntington Bancshares shares declined 6.1% after it lowered its full-year net interest income forecast as deposit costs are likely to remain elevated and lending activity sluggish.
Illumina shares fell 3.4% after S&P Dow Jones Indices on Friday announced it would be replaced in the S&P 500 by private equity firm KKR (KKR)
ECONOMIC NEWS: NY Fed Survey Shows US Consumers' 1-year Inflation Expectations Ease In May- A survey by the New York Fed showed on Monday that Americans' short-term inflation expectations eased slightly, while their view on price pressures in the longer term increased, and their expectations for the stock market hit a three-year high. The Federal Reserve Bank of New York's May Survey of Consumer Expectations showed that one-year-ahead inflation expectations fell to 3.2% from 3.3% in April. Expectations for inflation in three years was unchanged at 2.8%, while the projection for the five-year horizon rose to 3.0% from 2.8%. Households' expectations for the financial situation in 12 months were the strongest since June 2021, with 78.1% of survey respondents expecting to be financially the same or better off in a year's time. The mean perceived probability that U.S. stock prices will be higher in the year ahead increased to 40.5%, the highest reading since May 2021, the survey showed. The median expected increase in home prices in 12 months was steady at 3.3% in May. Food price growth expectation for the same time period was also unchanged at 5.3% and that for gas prices was steady at 4.8%. Th expected growth in healthcare costs in one year rose to 9.1% from 8.7%, while that for college education eased to 8.4% from 9.0%. The expected increase in rents was unchanged at 9.1%. The median one-year-ahead expected earnings growth was unchanged at 2.7%, while the mean probability that the U.S. unemployment rate will be higher one year from now increased to 38.6% from 37.2%.
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