- Lordstown slumps after CEO, CFO resign
- Tech-heavy Nasdaq outperforms S&P 500, Dow
- Indexes: Nasdaq, S&P gain; Dow down
June 14 (Reuters) - The S&P 500 and Nasdaq unofficially finished at record highs on Monday as most traders focused on this week's Federal Reserve meeting and not on adding to existing positions.
Investors are seeking new cues from the central bank on its inflation outlook, after recent data indicated the U.S. economy is regaining momentum but not overheating. This has eased investor worries about inflation.
While the Fed has reassured that any spike in inflation would be transitory, policymakers could begin discussing the tapering of bond buying at the Tuesday-Wednesday meeting. Most analysts, however, do not expect a decision before the central bank's annual Jackson Hole, Wyoming, conference in August. read more
Any shift in the Fed's dovish rhetoric could upend equity markets. The three main benchmarks are all trading higher year to date.
"There are really good arguments on both sides of the inflation argument, but to think it's a good idea to make substantive changes right now, based on continued increase in inflation or a transitory rate, seems silly to me," said Mark Stoeckle, CEO and senior portfolio manager of the Adams Funds.
High-growth tech-related stocks, which were at the heart of a sell-off driven by fears of rising rates, have regained their footing this month at the expense of economy-linked industrials (.SPLRCI), financials (.SPSY) and materials (.SPLRCM) stocks.
Unofficially, the Dow Jones Industrial Average (.DJI) fell 85.52 points, or 0.25%, to 34,394.08, the S&P 500 (.SPX) gained 7.76 points, or 0.18%, to 4,255.2 and the Nasdaq Composite (.IXIC) added 104.72 points, or 0.74%, to 14,174.14.
Having traded up earlier in the day as crude prices hit their highest levels in more than two years, the energy index (.SPNY) slipped.
Lordstown Motors Corp (RIDE.O) tumbled after it said Chief Executive Steve Burns and Chief Financial Officer Julio Rodriguez have resigned, days after the electric-truck maker warned that it may not have enough cash to stay in business over the next year. read more
The news weighed on special purpose acquisition companies that are trying to merge with electric-vehicle manufacturers, as Lordstown Motors did. Churchill Capital Corp IV (CCIV.N), which is combining with Lucid Motors, and ArcLight Clean Transition Corp (ACTC.O), which announced a tie-up with electric bus maker Proterra, were among those lower.
Tesla gained as CEO Elon Musk tweeted that the electric-car maker may resume bitcoin transactions. Bitcoin vaulted back above $40,000 on Musk's comments. read more
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