The Dow Jones Industrial Average extended its winning streak to four days, adding 176.59 points, or 0.46%. The S&P 500 and the Nasdaq also rose, gaining 1.03% and 1.19% respectively, driven by investor optimism that the Federal Reserve might lower interest rates sooner than later.
Federal Reserve's Rate Strategy
Thomas Barkin, President of the Richmond Federal Reserve, stated that the current U.S. interest rates, ranging from 5.25% to 5.50%, are sufficiently high to reduce demand and help control inflation. He remains hopeful that these measures will gradually bring inflation down to the Fed's target, although he acknowledged the persistent challenge of taming inflation.
Premarket Movers
| Company | Stock Movement | Details |
|---|---|---|
| Walt Disney (NYSE:DIS) | fell 5.3% | Posted its first profit from its streaming unit, two quarters ahead of schedule, and raised its annual earnings per share outlook as turnaround efforts yielded results. |
| Apple (NASDAQ:AAPL) | rose 0.8% | Reported by the Wall Street Journal to be developing its own chip to run AI software in data centers. |
| Kenvue (NYSE:KVUE) | rose 1.8% | Consumer health company, a spinoff from Johnson & Johnson (NYSE:JNJ), beat Wall Street estimates for Q1 profit and announced a 4% global workforce reduction as part of cost-cutting plans. |
| BP (NYSE:BP) ADRs | fell 2.1% | Posted lower than anticipated underlying profit in Q1 due to a decline in oil and gas prices. |
| Duke Energy (NYSE:DUK) | rose 0.3% | Beat expectations for Q1 profit, benefiting from higher rates and robust electricity demand. |
| Palantir Technologies (NYSE:PLTR) | tumbled 12% | Annual revenue forecast fell short of analysts' estimates. |
| UBS (NYSE:UBS) | rose 9% | Reported a Q1 net profit of $1.8 billion, far above expectations, marking its first quarterly profit since acquiring rival Credit Suisse in a government-brokered deal in 2023. |
| Boeing (NYSE:BA) | fell 0.9% | FAA opened an investigation into the 787 Dreamliner after misconduct was revealed regarding incomplete tests. |
| Lucid Group (NASDAQ:LCID) | fell 7.9% | Forecast higher capital expenditure this year and maintained a disappointing annual production forecast amid slower-than-expected EV demand. |
Apple's AI Innovation
Apple (NASDAQ: AAPL) is reportedly developing a new artificial intelligence chip for data centers, named ACDC, as reported by the Wall Street Journal. This move marks a significant step in Apple's strategy to reduce reliance on external chip manufacturers like Intel and bolster its position in the burgeoning AI industry.
Steady Oil Prices Amid Conflict
Crude oil prices were relatively unchanged, with U.S. crude and Brent crude at $78.47 and $83.35 a barrel respectively. The ongoing conflict in Gaza, especially after recent Israeli airstrikes in Rafah, continues to cast uncertainty over the global oil supply, keeping prices stable despite geopolitical risks.