US Economy Intact? – US Market Wrap

A rally in the S&P 500 lost traction as NVIDIA extended its selloff to more than 6%. The good news: most stocks in the US advanced.

The vast majority of groups in the S&P 500 climbed, boosted by statistics suggesting the economy is holding up and a slew of market analysts reassuring investors that Nvidia’s growth prospects are intact. While the major chipmaker brought down the technology sector, five of the “Magnificent Seven” megacaps gained. The small-business Russell 2000 index rose about 1%.

The S&P 500 hovered near 5,590. Treasuries held losses after a $44 billion sale of seven-year notes was a bit soft. The yield on 10-year bonds advanced three basis points to 3.86%. Swap traders slightly trimmed bets on Fed easing, while still expecting around 100 basis points of cuts for 2024. The dollar rose. Brent oil jumped to around $80.

The US economy grew at a slightly stronger pace in the second quarter than initially reported, reflecting an upward revision to consumer spending that more than offset weaker activity in other categories.