US stocks fell as a strong rally in Nvidia shares was overshadowed by economic data showing inflation could delay the Federal Reserve from cutting interest rates.
The Dow Jones Industrial Average closed down 605.78 points, or 1.531 TP3T, to 39,065.26, partly due to Boeing shares plunging 7.551 TP3T after the US aircraft maker forecast negative free cash flow in 2024 due to delayed deliveries. This was the Dow's biggest daily percentage drop since March 22, 2023. Meanwhile, the S&P 500 composite index fell 39.17 points, or 0.741 TP3T, to 5,267.84, while the Nasdaq Composite Index fell 65.51 points, or 0.391 TP3T, to 16,736.03.
Nvidia shares rose 9,32% to close above $1,000 for the first time, pushing the Nasdaq and S&P 500 to record intraday highs after the artificial intelligence (AI) chipmaker forecast quarterly revenue that beat estimates and announced a stock split. Nvidia shares have risen about 1,10% this year after soaring about 2,40% in 2023.
However, stocks fell after economic data showed that U.S. price pressures increased in May, even as business activity accelerated and weekly jobless claims fell, suggesting the labor market remained solid. U.S. government bond yields rose after the data, which weighed on small-cap stocks, as the Russell 2000 index fell 1.6%, its biggest daily percentage drop since April 30.
According to CME's FedWatch Tool, the market is currently predicting a 52.2% chance that the Fed will cut interest rates by at least 0.25 percentage points in September, down from nearly 67% a week ago. In Vietnam, on May 23, the market saw most stocks turn around and increase towards the end of the session, bringing the VN-Index up more than 14 points at the close. Specifically, at the end of this session, the VN-Index increased by 14.12 points to 1,281.03 points, while the HNX-Index increased by 1.76 points to 246.91 points.
Source: Bnews
