The Market News Today: ADP Jobs Report at Forefront in Holiday-Shortened Session

S&P 500 Hits 5,500; Pullback Concerns Arise

U.S. stock futures hovered near flat Wednesday after the S&P 500 topped 5,500 for the first time. Paramount Global shares surged nearly 7% on Skydance Media’s potential acquisition of National Amusements. Fed Chair Jerome Powell hinted at no imminent rate cuts. Citi’s Scott Chronert predicted a market pullback amid euphoric sentiment. Key economic data, including ADP payrolls and trade deficit, will be released Wednesday. The NYSE will close early ahead of Independence Day.

Consumer Discretionary Sector Soars; Tesla Drives Gains

The consumer discretionary sector surged 1.8%, reaching its highest level since January 2022, propelled by a 10.2% jump in Tesla shares. Tesla’s second-quarter vehicle production and delivery exceeded analyst expectations, with 443,956 deliveries and 410,831 vehicles produced. Despite these gains, Tesla’s stock remains down 7% for 2024. Wells Fargo analysts predict declining delivery growth and recommend selling Tesla shares. Investors await Tesla’s Q2 earnings and a marketing event in August to reveal a new robotaxi design.

Goldman Sachs Warns of Rising Equity Risks in Second Half

Goldman Sachs anticipates increased equity risks in the latter half of the year, following a technology-led rally in the first half. Strategist Peter Oppenheimer cites lofty valuations and growing political risks as key concerns. Despite these challenges, historical data suggests a strong second half usually follows a robust first half. Oppenheimer reassured investors by highlighting that weak returns in the latter half are uncommon after such a strong first half.

Treasury Yields Steady; Investors Await Key Data, Fed Insights

U.S. Treasury yields remained stable on Wednesday as investors anticipated key economic data and analyzed Federal Reserve Chairman Jerome Powell’s remarks. Powell noted progress on inflation but emphasized the need for more evidence before cutting rates. Investors await minutes from the Fed’s latest meeting and upcoming reports on import/export figures, services sector insights, and ADP’s private payrolls. Friday’s June jobs report, including nonfarm payrolls and unemployment rate, will further indicate the economy’s cooling trend and future interest rate path.

Gold Prices Steady; Crude Oil Gains on Inventory Data and Middle East Tensions

Gold prices firmed as investors awaited the Fed’s meeting minutes, with a weaker dollar boosting bullion’s appeal. Crude oil prices rose following a significant U.S. inventory drawdown of 9.163 million barrels, according to the American Petroleum Institute (API). Gasoline inventories increased by 2.468 million barrels. Despite initial fears, Hurricane Beryl is expected to have limited impact on production. Analysts anticipate potential gold price increases later this year, supported by market trends and geopolitical tensions in the Middle East.