Wall Street Demonstrates Resilience Amidst Anticipation of Inflation Data and Fed Meeting

In a week filled with market anticipation, Wall Street showcased remarkable resilience as it navigated through pivotal tests with confidence. The S&P 500 and Nasdaq 100 indices achieved record highs for four consecutive days, driven by the impressive performance of tech giants such as Apple Inc., Nvidia Corp., and Microsoft Corp. These market gains were achieved despite Federal Reserve Chairman Jerome Powell’s emphasis on the need for higher confidence in inflation and the Fed’s updated projections indicating only one interest rate cut in 2024.

Investors, however, remain hopeful that rate cuts will commence in September. This optimism has been reinforced by cooler-than-expected inflation reports on both consumer and producer price data, as well as unexpectedly high weekly unemployment claims and weak consumer sentiment.

Among the notable performers in the S&P 500, Broadcom stood out with its stock soaring over 20%. This surge was driven by stronger-than-expected earnings and rising confidence in the demand for artificial intelligence chips. It marked one of Broadcom’s best weekly performances since going public.

Goldman Sachs raised its iPhone sales projections for 2025 and 2026 by 9.5 million and 10.1 million units, respectively, following Apple’s unveiling of artificial intelligence innovations at the Worldwide Developers Conference 2024. These generative AI features and system updates have sparked increased confidence in future iPhone sales.

Economist Paul Krugman declared victory over price pressures, stating that inflation is effectively defeated. He emphasized the importance of considering core inflation, which excludes shelter costs, for a more accurate understanding of the economic situation.

GameStop Corp. experienced a surge in its stock price after Keith Gill, also known as “Roaring Kitty,” updated his Reddit followers on his increased holdings of 9.001 million shares. The company’s annual shareholder meeting was disrupted due to overwhelming interest from retail investors.

In a significant move, Tesla has officially shifted its incorporation from Delaware to Texas following a shareholder vote. This aligns its legal domicile with its headquarters in Austin and reflects CEO Elon Musk’s ongoing shift of operations to the Lone Star State.