In the recent movement of the US stock market, Monday morning proved to be a mixed bag of results. Nvidia, one of the leaders in the technology sector, faced a drop of approximately 2% in its shares, negatively influencing the performance of the technology sector. This scenario occurred precisely at the opening of the last week of a quarter that, until now, has presented exceptional results on Wall Street.

While the Nasdaq Composite technological index registered a reduction of around 0.4%, the Dow Jones Industrial Average showed an increase of 0.3%. The S&P 500, in turn, operated slightly below stability. This volatility arises in a context where the market is already anticipating the end of a quarter marked by significant gains, with the S&P 500 and Nasdaq accumulating increases of approximately 4.5% and 8%, respectively.

Driven by advances in artificial intelligence, the stock market experienced a notable recovery, however, it showed signs of exhaustion at the end of last week. Nvidia, in particular, which stood out as one of Wall Street’s hot spots in 2024, saw its values ​​retreat after reaching all-time highs.

In addition to stock volatility, the week promises to be crucial with important economic indicators on investors’ radar. Expectations revolve around the release of the May Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation metric. The “core” index, which excludes volatile items such as food and energy, is expected to have risen just 0.1% last month, marking the slowest pace of increase since last November.

Annually, core PCE inflation should show an increase of 2.6%, the lowest since March 2021. This indicator is closely monitored, especially after this month’s Consumer Price Index (CPI) suggested a cooling of inflation, strengthening the prospect that the Federal Reserve could reduce interest rates as early as 2024.


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