The three major US stock indexes reversed their first losses to find themselves in positive territory after decades' worst first half of the stock market.
However, all three indexes fell for the week.
"We're gearing up for the holiday weekend and there's a relief rally at the end of the day," said Joseph Sroka, chief investment officer at NovaPoint in Atlanta. "But we'll probably have to wait for investors to come back from the holiday weekend to see if that's sustainable at the start of the new quarter."
Market participants are now looking ahead to the second-quarter earnings season, the Labor Department's June jobs report, and the Federal Reserve's monetary policy meeting scheduled for late July.
The microchip sector plummeted after Micron Technology Inc (NASDAQ: MU) warned about cooling demand. Shares of
Micron fell 2.9%, dragging the Philadelphia SE Semiconductor index down 3.8%.
Concerns about falling demand amid decade-high inflation are reflected in the Institute of Supply Management's (ISM) Purchasing Managers' Index, which shows a drop in input prices for orders. new.
The ISM report seems to support the idea that the economy is cooling and inflation appears to have passed its peak. This raises the possibility that the Fed may have room for a dovish turn after a second consecutive 75 basis point rate hike is expected in July.
"The Fed will need more evidence to change its stance on further rate hikes," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York. "There is still a lot of uncertainty about the economy and inflation despite early signs that inflation may have peaked."
The Dow Jones Industrial Average rose 321.83 points, or 1.05%, to 31,097.26, the S&P 500 added 39.95 points, or 1.06%, to 3,825.33 and the Nasdaq Composite added 99. 11 points, or 0.90%, to 11,127.85.
11 major S&P 500 industry groups ended the session in the green, with utilities posting the highest percentage gain.
The second-quarter reporting season kicks off in a few weeks, and 130 S&P 500 companies have already announced. Of those, 45 were positive and 77 were negative, a negative-to-positive ratio lower than a year ago, according to Refinitiv data.
Yields outlook hit by woeful inflation and falling consumer demand should keep market participants attentive to the forecasts.
Analysts now expect S&P 500 total second-quarter earnings growth of 5.6%, down from the 6.8% expected at the start of the quarter, according to Refinitiv.
Shares of department store chain Kohl's Corp (NYSE: KSS) fell 19.6% following the decision to halt negotiations over a possible sale to Franchise Group (NASDAQ:FRG).
Pre-issues outnumbered discount issues on the NYSE by a ratio of 2.77-1; on the Nasdaq, a ratio of 1.57 to a number of advancers is preferred.
S&P 500 Posts 52 Week Highs and 48 New Highs; Nasdaq Composite recorded 12 new highs and 219 new lows.
Volume on US exchanges was 11.01 billion shares, compared with an average of 12.88 billion over the past 20 trading days.
By Stephen Culp on Investing
Editor By: Black Wall News.
No comments:
Post a Comment