On Monday, the US stock indices closed the trading session without any gains, while the S&P 500 and Nasdaq Composite reported new record highs.
Since the beginning of the week, a cautious mood has been prevailing in the US stock market as investors are focused on the upcoming two-day Fed meeting. Most market participants expect the central bank to keep interest rates at zero. However, some investors are hoping to receive some clues as to whether rising inflation will force the US Federal Reserve to raise interest rates ahead of schedule.
Thus, the S&P 500 stock indicator rose by 0.18% to 4,255.15, notching its 29th record of the year. The Nasdaq Composite climbed by 0.74% to 14,174.14, hitting a new all-time high for the first time since late April. However, the Dow Jones Industrial Average sank by 0.25% to the level of 34,393.75. Among the components of the indicator, the most tangible losses were incurred by JPMorgan Chase & Co (-1.7%) and Walgreens Boots Alliance (-1.6%).
At the same time, the market value of Chipotle Mexican Grill soared by 1.8% after experts from independent investment bank Raymond James upgraded the restaurant stock to strong buy from outperform, saying that the company had room to raise prices and the move would boost its financial results.
Shares of US electric vehicles maker Lordstown Motors tumbled by 18.8% over the session amid the sudden departure of its chief executive and CFO.
The stock price of Italian sports car manufacturer Ferrari NV declined by 2.9%.
AMC shares continued to gain momentum, indicating the broader trend of meme stocks.
Shares of Apple Inc. grew by 2.5%, Facebook Inc. - by 1.7%, and Alphabet Inc. - by 0.8%. Tesla stock was up by 1.3%.
Market participants are awaiting the results of the meeting of the US Federal Reserve System scheduled for June 15-16.
In addition to the Fed's decision on interest rates and its comments on the volume of asset buybacks, investors are hoping to receive some information about economic forecasts and possible scenarios of interest rate fluctuations.
Analysts believe that the US Federal Reserve will hardly provide market participants with any clues about its plans to gradually reduce the volume of bond buybacks earlier than August-September 2021.
In addition, specialists do not expect any major announcements at the meeting of Fed members. However, it is also important to understand that the Fed meeting is of great importance. It will help investors determine the central bank's reaction to high inflation rates.
