Day Traders Diary

6/5/23

The major averages closed in the red after opening mixed to start the day with an intraday 9-month high for the S&P 500. The Dow Jones Industrial Average finished down 199 points or 0.59%. The S&P 500 declined 8 points while the Nasdaq closed down 11 points.

Apple fell 0.76%, retreating from all-time highs in the afternoon during their Worldwide Developers Conference. Apple unveiled a reality headset set at pricing starting at $3499. Intel fell 4% after Apple disclosed they will no longer be using their chips for computers. Chipmaker, Nvidia also pulled back more due to valuation concerns.

Today's pullback came after last week's rally following an encouraging May jobs report that signaled that the economy is still strong, but slowing. Inflation data came in better than expected as well. The passage of the debt ceiling bill also boosted investor sentiment.

Despite recent moves, worries persist over 2023′s narrow stock market rally, led by just a handful of tech names, and whether there could be an intermediate-term correction if breadth fails to improve. Bespoke Investment Group signaled the S&P 500 is now in "extreme overbought" territory while Bank of America made comments that the markets are climbing a wall of worry.