Marketbites: S&P Closes Out Best Week Since March
Updated: Jun 22
MARKET PERFORMANCE:
Portfolio Manager Commentary:
Stocks slipped on Friday as Wall Street closed out a huge week in which investors received a pause on rate hikes from the Federal Reserve, plus encouraging inflation data. The Federal Reserve delivered what investors wanted this week when the central bank left rates unchanged Wednesday after 10 consecutive hikes. While the Fed signaled that two more rate increases were coming this year, many traders and economists on Wall Street believe the Fed could be nearly done. Earlier in the week, the May consumer price index came in at the lowest in two years.
Adobe added 0.9% yesterday after beating results and issuing upbeat guidance, the latest tech stock to rally. AI darling Nvidia gained 10% this week, adding to its 192% surge this year. Microsoft added 4.7% this week and hit a record Thursday. Tech shares were the hardest hit initially when the Fed embarked on its rate-hiking campaign. Friday marked the last trading day of the month with the market closed on Monday in observation of Juneteenth.
Chart of the Day:
Americans opened their wallets more this spring, in the latest sign of the economy’s surprising strength despite high interest rates and inflation. Consumers spent a seasonally adjusted 0.3% more in May at retail stores, restaurants and online, following April’s strong 0.4% advance, the Commerce Department said Thursday. That growth reflected robust hiring and rising wages that pumped up incomes in recent months, further defying recession predictions in early 2023. “The recession will be delayed as long as consumers continue to spend,” Oren Klachkin, an economist at Oxford Economics, wrote in a note.
Consumers spent more at grocery, furniture and electronics stores last month, Tuesday’s report showed. They also appeared to shrug off higher interest rates in May. Sales climbed at auto dealerships and home-improvement stores, places where customers often borrow to pay for big-ticket purchases. Americans spent less at gasoline stations, which can reflect declining prices at the pump. Falling fuel prices leave shoppers with more money to spend elsewhere.
Source: WSJ
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