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top 9 must know updates before the stock market opens 508


Top 9 Must-Know Updates Before the Stock Market Opens


Benjamin Hughes

June 22, 2024 - 10:30 am


S&P 500 Hits New Record Close

The S&P 500 has achieved another milestone by closing at a new record high. On Monday, the broad index reached 5,473.23, an increase of 0.77%. This achievement was driven primarily by gains in megacap tech stocks, which also propelled the information technology sector up by 1.2%. Major tech players like Apple, Microsoft, Alphabet, Amazon, and Meta Platforms all saw their stock prices rise, contributing significantly to the index’s performance. The Nasdaq Composite also posted a strong performance, rising 0.95% to finish at 17,857.02. This comes after both the S&P 500 and the Nasdaq Composite achieved their seventh weekly gain in eight weeks. The Dow Jones Industrial Average also ended its four-day losing streak by closing 0.49% higher. The continuous rally in these indexes highlights the robust performance of the tech sector and its influence on the broader market.

Nvidia to Benefit from Upcoming Rebalance

Nvidia is set to experience a significant boost due to an upcoming rebalance of the index followed by the Technology Select Sector SPDR Fund (XLK). The new calculations indicate that Nvidia’s weighting will increase to 21%, a substantial rise from its previous weight of 6% as of June 14. This change positions Nvidia as one of the top stocks in the index, second only to Microsoft, which will have a weighting of around 21%. In contrast, Apple’s weighting will drop significantly to 4.5%, down from its previous 22%. Matthew Bartolini, head of SPDR Americas Research, provided these insights into the upcoming changes. The increase in Nvidia’s weighting reflects the company’s growing influence and performance in the tech sector, making it a key stock to watch.

Apple Discontinues Apple Pay Later Program

Apple has announced the discontinuation of its buy-now-pay-later program, Apple Pay Later. Launched last year, this program allowed customers to pay off online purchases of up to $1,000 in four interest-free installments. However, Apple has now stopped issuing new loans through this program in the U.S. This decision comes after the company revealed plans to incorporate installment loans into its Apple Pay checkout process later this year through third-party companies like Affirm and issuers including Citigroup. Despite the discontinuation, users with existing loans will still be able to access Apple Pay Later features to pay off their loans. This shift signifies Apple’s move towards integrating more flexible payment options through established financial services partners.

Uncertain Future for GameStop

GameStop’s future appears unclear following its recent annual meeting. The video game retailer’s stock hit session lows on Monday after the meeting concluded without providing any updates on the company’s strategies or future plans. The meeting, which lasted about 30 minutes, did not allow shareholders to ask questions. Although CEO Ryan Cohen reiterated the company’s commitment to cost-cutting and profit-boosting efforts, he did not offer specific details on growth strategies. As a result, GameStop’s shares traded as much as 17% lower, closing at $23.79. The lack of clarity from the company’s leadership has left investors uncertain about its direction and potential for future growth.

McDonald's Ends AI Drive-Through Experiment

McDonald's has decided to end its AI drive-through technology experiment with IBM. This partnership, which began in 2021, involved the implementation of Automated Order Taker technology in more than 100 restaurants. However, according to a memo sent to franchisees and obtained by CNBC, the technology will be shut off no later than July 26. The AI system faced challenges in accurately interpreting different accents and dialects, leading to order inaccuracies. This decision comes as other restaurant chains like Del Taco and Panera continue to explore AI technologies to streamline their operations. McDonald's move highlights the difficulties of implementing AI in fast-food environments and the need for more advanced and reliable solutions.

Market Implications and Investor Sentiment

The recent developments in the stock market and major corporations like Nvidia, Apple, GameStop, and McDonald's have significant implications for investors. The S&P 500’s new record close reflects the continued strength of the market, driven by tech giants. Nvidia’s expected boost from the index rebalance underscores its growing prominence in the tech sector. Apple’s shift away from its buy-now-pay-later program indicates a strategic realignment towards leveraging third-party financial services. GameStop’s lack of clear strategic direction raises concerns about its future viability. Meanwhile, McDonald's decision to end its AI drive-through experiment highlights the challenges of integrating advanced technology in the fast-food industry.

Tech Sector Dominance

The tech sector’s dominance in driving the S&P 500 and Nasdaq Composite to new heights cannot be overstated. The performance of megacap stocks like Apple, Microsoft, Alphabet, Amazon, and Meta Platforms has been instrumental in achieving these record closes. Investors are closely watching these companies as they continue to innovate and expand their market influence. Nvidia’s significant weighting increase in the Technology Select Sector SPDR Fund is a testament to its growing importance and impact on the tech industry. As the sector evolves, these companies remain at the forefront, shaping market trends and driving overall growth.

Strategic Shifts and Market Reactions

Apple’s decision to discontinue its buy-now-pay-later program represents a strategic shift towards more integrated and flexible payment solutions. By partnering with third-party companies and financial institutions, Apple aims to enhance its Apple Pay offering, providing customers with more options and convenience. This move also reflects the company’s focus on leveraging established financial services to expand its payment ecosystem. Similarly, McDonald’s discontinuation of its AI drive-through experiment signals a reevaluation of its technological initiatives. The challenges faced in accurately interpreting customer orders highlight the complexities of implementing AI in real-world environments. These strategic decisions by major corporations have significant implications for their market positioning and investor sentiment.

GameStop's Uncertain Path

GameStop’s recent annual meeting has left investors with more questions than answers. The lack of specific details on future growth strategies from CEO Ryan Cohen has contributed to a significant drop in the company’s stock price. This uncertainty is a cause for concern among shareholders who are looking for clear direction and confidence in the company’s plans. As GameStop navigates its path forward, it will need to address these concerns and provide a compelling vision for its future to regain investor trust and support.


In conclusion, the stock market is experiencing significant movements driven by major developments in leading companies. The S&P 500’s record close, Nvidia’s upcoming boost, Apple’s strategic shift, GameStop’s uncertainty, and McDonald's decision to end its AI experiment all contribute to a dynamic and evolving market landscape. Investors are closely monitoring these changes and adjusting their strategies accordingly. Staying informed about these developments is crucial for making sound investment decisions and understanding the broader market trends. As the market continues to evolve, the actions and performance of these key players will remain central to shaping the investment landscape.