US stocks drop as investors digest jobless claim and anticipate Inflation report

The Dow Jones Industrial Average lost 0.4%. Despite Biogen and LLY stock surging, the S&P 500 index fell 0.1%. The Nasdaq composite rose 0.5%, with BIIB shares making up part of the Nasdaq 100. S&P 500 lost 0.08% at the end of the trading session on Monday.

This week, meme stocks were once again in the spotlight. On Monday, AMC gained as much as 25% and settled nearly 15% higher, while GameStop and BlackBerry both gained double digits. Despite significant gains, most of these speculative stocks fell into the negative on Friday after violent trading.

On increased optimism about the ongoing economic recovery, major stock indices had a positive week. Last week, the S&P 500 gained 0.6 percent, bringing its gains in 2021 to more than 12 percent. Last week also, both the Dow and the Nasdaq saw advances.

According to Friday’s jobs data, the jobless rate fell to 5.8% from 6.1 percent in May, with 559,000 new jobs gained. The data was deemed robust enough to maintain investor confidence in the economy while remaining light enough to prevent the Federal Reserve from abruptly changing its cheap money policy.

Inflation data will be the focus of investors this week, with the Consumer Price Index (CPI) for May set to be announced on Thursday. The CPI increased by 4.2 percent in April compared to the previous year, the fastest increase since 2008. If prices continue to climb, the Federal Reserve may be forced to reverse its accommodative policy.

Early Tuesday Eastern time, the China Passenger Car Association will disclose figures on May vehicle sales. This will encompass both retail and wholesale sales for Tesla’s electric vehicles.

According to a survey published last week, Tesla vehicle orders practically fell in May. This follows weeks of complaints from Chinese customers about the safety of Tesla vehicles and the company’s alleged arrogance in responding. These concerns have received a lot of coverage in the state media.

Tesla’s May deliveries, on the other hand, are based on orders from previous months. Tesla’s public relations troubles may not have a significant impact until this summer.

The Innovator IBD 50 ETF (FFTY) was up 1.9 percent, among the best ETFs, while the Innovator IBD Breakout Opportunities ETF (BOUT) was up 1.05 percent. The iShares Expanded Tech-Software Sector ETF (IGV) increased by 0.8%. SMH (VanEck Vectors Semiconductor ETF) fell 0.5 percent. The MRVL stock is a part of the SMH.



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