Day Traders Diary

6/20/24

The major averages closed mixed as the ascent to new highs stalled today with money, rotating out of the popular tech sector going into the quarter end. The Dow Jones Industrial Average jumped over 250 points led by blue chips like McDonalds, J&J, IBM and Chevron. Tech stock, Salesforce jumped 4% within the Dow. The S&P 500 fell 14 points while the Nasdaq dropped 122 points led by weakness in tech and the chip space.  

The recent enthusiasm for AI that has propelled the markets to new highs has waned at least for a day. AI chip stocks Nvidia, Broadcom, Qualcomm, Micron and Analog Devices all fell over 2% or more. AMD was the lone AI chip stock higher by 4%.

Some investors have been concerned over a lack of market breadth outside the largest technology companies that could worsen, although the dour sentiment has yet to fully influence stocks that have continued to break records.

U.S. treasury bonds rose Thursday after fresh economic data was released that showed further signs of a slowing economy. The 10-year treasury yield is up nearly 6 basis points to 4.273%. The 2-year treasury yield is also up around 4 basis points to 4.748%.