Nasdaq soars by over 260 points higher after Fed rate hold

The Dow Jones Industrial Average (^DJI) could not hold onto this morning's massive gains as it falls into the red ahead of Wednesday's close. On the other hand, the S&P 500 (^GSPC) and the Nasdaq Composite (^IXIC) pulled off another bout of record highs coming off May's CPI (Consumer Price Index) data and the Federal Reserve's interest rate hold.

Market Domination Overtime's Julie Hyman and Josh Lipton comment on the massive moves upward the market has made under persistent inflation, while Jared Blikre highlights the day's sector winners.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written by Luke Carberry Mogan.

Video transcript

There's the closing bell on Wall Street.

Now it is market domination over time.

We're joined by Jared Bli to get you up to speed on the action from today's session and an interesting session.

It was starting Josh with this morning CP I coming in milder than expected.

Good print there.

Second, good prints are showing momentum going in the right direction in terms of deceleration and inflation.

And then we got a fed that didn't change rates and said we're still waiting for more good data in that direction.

Exactly.

So the dow down about 36 points on the day after all of that.

But the S and P 500 up 9/10 closing at a record, the NASDAQ up 1.5% closing at a record.

Want to take a look at some other asset classes real quickly too because the 10 year note reflecting those sort of pulled back expectations for rate increases.

So off 11 basis points pretty big move there in the 10 year, the dollar down as well on the day and then just glancing at some other stuff, I know we've been watching Bitcoin, not doing much.

Went up and then came back down again, I guess, and crude oil, uh trading a little bit higher.

And then the other thing I wanted to check real quick and this is something we were just talking about.

All the activity we're seeing in large cap tech today.

It's really interesting to see those moves.

Do you think Jay Powell sees this?

You know, he's probably calm, cool, collected some places, kind of listen.

Job.

well done.

I didn't send the markets into a tizzy.

I've done that before.

Didn't do it again.

I played a listen as people like Rick Reader of Blackrock have pointed out this is sort of a double edged sword for the FED because the fact that stocks keep going up, the fact that also rates are still at relatively high levels means that the wealthiest Americans are worth more and have more to spend and can and can keep a, you know, a base under inflation maybe.

But I did want to point out as well.

All of these guys over here all closing records today, Microsoft Apple, NVIDIA, even as regained its market cap position above Microsoft, all of them at records arm which we were just talking about with Antoine a few moments ago at a record TSM Taiwan semiconductor at a record.

Wasn't it interesting just to talk to the analyst?

I thought it would be kind of like what he called the second derivatives out of Apple's keynote for NVIDIA for arm, right?

Which in our arm record today was that?

Yes, record as well.

Exactly.

So a lot of activity in Big Tech as well for all of this.

Let's go over to Jerry now for a closer look at today's action.

Well, thank you, Julie.

Let's stick with the NASDAQ 100 bringing it behind me.

Uh I'm going to show you something interesting happened earlier today and then I'll move on to our sectors but Microsoft lost the top spot.

It was Apple, they switched positions, something like that.

Uh I shouldn't, I'm not gonna be telestrater for the NFL here but you get my drift.

It changed by the end of the day.

So there's gonna be some headlines probably as Apple reclaims that top spot and potentially loses it and we're looking at the sectors as well.

Three sectors outperformed today.

Tech by far and away the leader up over two percent XL Y.

That's consumer discretionary up 1% and industrials pretty close to that as well to the downside energy and staples both down over 1% and taking a look at our leaders.

Guess who the number one winner was home builders.

You don't see that very often, but that is potentially an interest rate play.

Also taking a look at chip stocks.

So is number two regional banks, Korean stocks.

So a lot of broad strength but tending to be in some bigger names, some bigger sectors and with home Builder.

We haven't seen that in a while.

So I'm, I guess I'm just a little bit surprised here.