New York, USA – The Dow Jones Industrial Average experienced a dip of over 100 points today following disappointing manufacturing data that raised concerns about the strength of the U.S. economy. In contrast, the S&P 500 saw a slight increase of 0.11%, while the Nasdaq Composite gained 0.56%. Notably, Nvidia’s stock surged by nearly 5% after the introduction of new artificial intelligence chips. However, the Treasury’s 10-year yield fell due to weaker-than-expected ISM manufacturing data, which reported a figure below 50, indicating a contraction in the sector. Oil prices also took a hit, dropping more than 3% as OPEC+ announced plans to phase out voluntary production cuts.
In a separate development, Indian markets experienced a sharp decline as the country began counting votes in a closely contested election. The Nifty and BSE Sensex fell significantly, reflecting the uncertainty in the early election results. Despite this, South Korea’s Kospi, Japan’s Nikkei 225, and Australia’s S&P/ASX 200 all observed lower trading figures. On the other hand, the Hang Seng in Hong Kong inched higher, and Mainland China’s CSI 300 index rose by 0.39%.
One of the standout performers in the market was GameStop, whose shares closed 21% higher after a significant jump. Keith Gill, a prominent figure in the meme stock movement, retained a sizable position in the company, leading to discussions about potential market manipulation. Separately, Moderna and Merck reported positive results from an experimental vaccine for the deadliest form of skin cancer, showing improved survival rates for patients receiving the treatment.
Furthermore, Microsoft announced job cuts in its mixed reality division, aligning with its focus on AI technologies. Similarly, Alphabet initiated layoffs in its cloud unit, a rapidly growing segment of its business. Additionally, investors have shown interest in a critical artificial intelligence chip stock that has seen modest yet steady growth over the past year.
Amid all this, concerns about the economy’s strength lingered, impacting the Dow. The Atlanta Federal Reserve’s GDPNow tracker revised its second-quarter growth forecast downward, citing disappointing news from the manufacturing sector. With markets trading sideways as they assess valuations in a higher interest rate environment, experts foresee potential shifts in consumer behavior and corporate earnings in the near future.
Overall, Wall Street had a robust month in May, with the Nasdaq Composite reaching a new high and posting its strongest performance since November 2023. Much of this success was attributed to Nvidia’s post-earnings surge, signaling optimism amid evolving market dynamics. The weight-loss market is also set for significant growth, projected to reach $100 billion by the end of the decade, with new players entering the field to challenge existing offerings from Eli Lilly and Novo Nordisk. Additionally, Structure Therapeutics reported encouraging results from a clinical trial, further boosting investor interest in the healthcare sector.