Weekly Review (May 8-12)
STOCKS
After positive start to the week, most equities turned mixed-to-lower as investors got cautious amid a number of uncertainties. Wall Street equities finished mostly down on Thursday as bank stocks came under pressure, amid the resurgent worries about the sector. Shares of regional bank PacWest slumped nearly 23% after it disclosed a flight of deposits last week (-9.5% in the week of May 5). The bank’s total deposits declined 16.9% in the first quarter. Adding to a negative tone in the regional markets, Disney shares ended 8.7% down after dismal second-quarter results. As such, the Dow Jones Industrial Average fell 0.66%, the S&P 500 lost 0.17%, and the Nasdaq Composite added 0.18%. For the week, the S&P 500 is down 0.1%, the Dow is down 1.1%, while the Nasdaq is up 0.8%. Also, market participants are nervous in anticipation of resolution on the debt ceiling in the United States. According to the latest reports, a debt limit meeting between Biden and top lawmakers has been postponed, and the leaders agreed to meet early next week.
12.05.2023
1180
Weekly Review (May 1-5)
STOCKS
Stock markets traded on a negative note during the week as worries over banks reemerged after US regulators announced the seizure of First Republic Bank and that it had been sold to JPMorgan Chase. The giant will pay the US Federal Deposit Insurance Corp $10.6 billion to take control of most of the regional bank's assets. Wall Street markets finished lower Wednesday to notch a three-day losing streak after the Federal Reserve raised rates by 25 basis points, as was widely expected. Investor sentiment was dented as Powell ruled out cutting interest rates because he did not expect inflation to come down quickly enough. On the other hand, the bank has softened its language by dropping a line from the March statement that said, “the Committee anticipates that some additional policy firming may be appropriate.” In Europe, the ECB delivered a 25-basis-point rate hike on Thursday, as expected. The bank has now raised borrowing costs at seven consecutive meetings since July.
05.05.2023
1172
Weekly Review (April 24-28)
STOCKS
Risk-off sentiment dominated global financial markets during the week as investors were disappointed by fresh economic data. US consumer confidence fell to a nine-month low this month amid recession fears. The Conference Board consumer confidence index fell to 101.3 from 104.0 in March versus 104.0 expected. However, Wall Street stocks finished higher on Thursday as investors were inspired by upbeat results from Meta Platforms that boosted its tech counterparts. The company’s shares rallied nearly 14% after the report revealed quarterly revenue that topped expectations. Also, Meta delivered an upbeat forecast. Against this backdrop, the Nasdaq Composite gained 2.43% to post its best day since January. On the data front, a report on Thursday showed that the US economy expanded at an annualized rate of 1.1% in the first quarter, down from the 2.6% growth recorded in the last quarter of 2022. Still, the underlying details of the report pointed at solid consumer activity and strong inflation components.
28.04.2023
1108
Weekly Review (April 17-21)
STOCKS
After a modestly positive start to the week, Wall Street equities turned mixed-to-lower, with investors staying cautious amid the first-quarter earnings-reporting season. On the data front, the New York Fed’s Empire State business-conditions index jumped 35.4 points in April to 10.8. This was the first reading in green territory in five months. Elsewhere, the Fed's Beige Book survey showed that inflation and hiring slowed across the 12 Fed districts. Meanwhile, Japan reported that its trade deficit narrowed last month as exports rose more than expected while growth in imports slowed. On Thursday, US jobless claims and existing home sales disappointed consensus estimates, adding to expectations for a pause in Fed’s interest rate hikes. As such, US stocks finished lower overnight, pulled down by signals that the economy may be slowing. The S&P 500 fell 0.6% and is headed for a weekly loss. The Dow Jones Industrial Average gave up 0.3%, and the Nasdaq Composite shed 0.8%.
21.04.2023
1147
Weekly Review (April 10-14)
STOCKS
Global stocks were mixed-to-positive during the week, with focus on US data. March’s consumer price index is expected to climb 0.3% from February’s figure, lowering the year-over-year CPI to 5.2%. Markets are now pricing in a nearly 70% probability that the Federal Reserve will raise interest rates by another 0.25% next month. Wall Street stocks rallied overnight as investors cheered another report pointing to cooling inflation. The PPI declined by 0.5% month over month versus expectations for prices to be unchanged. Excluding food and energy, the index fell 0.1% month over month, suggesting the Fed probably doesn’t have to raise rates in the next meeting. The S&P 500 climbed 1.33%, the Nasdaq Composite advanced 1.99% and the Dow Jones Industrial Average added 1.14%. In individual stocks, shares of Alphabet and Meta were up 2.7% and about 3%, respectively.
14.04.2023
1087
Weekly Review (April 3-7)
STOCKS
Global investors were nervous during the week, with stocks trading mixed-to-negative these days. The data out of the US showed that, according to ADP, private sector hiring decelerated to 145,000 in March, down from 261,000 in February and below expectations of 210,000. Meanwhile, the ISM non-manufacturing PMI data came in at 51.2 vs expectations of 54.5 and a prior print of 55.1 in February. The figures fueled recession concerns, thus fueling risk-off sentiment across the markets. Also, markets were affected by rising political tension between Beijing and Washington after a meeting between the US House speaker and Taiwan’s president. Besides, investors were inclined to take some profit after recent solid gains ahead of a holiday for Good Friday. On Thursday, US stocks finished marginally higher, with tech equities leading the gains. The S&P 500 rose 0.36%, the tech-heavy Nasdaq Composite added 0.76% and the Dow Jones advanced just 0.01% after losing over 150 points at its session low.
07.04.2023
1150
Weekly Review (March 27-31)
STOCKS
Global equities traded mixed and volatile this week. Wall Street stocks closed higher on Thursday for the second session in a row, finishing the month and the quarter on a positive note. The yield on the benchmark 10-year US Treasury note slipped down to 3.54%, while two-year yields rallied to 4.1%. On the data front, weekly jobless claims increased by 7,000 to 198,000, adding to hopes that the Federal Reserve could slow down its tightening path. The S&P 500 added 0.57% and the Dow Jones Industrial Average gained 0.43%, while the tech-heavy Nasdaq Composite advanced 0.73%. For the month, the Nasdaq is up more than 4%. In Asia, the Shanghai Composite index was up just 0.25% after mixed economic updates. Chinese service sector activity grew at its fastest pace in 12 years this month, while manufacturing activity slowed from the prior month.
31.03.2023
1101
Weekly Review (March 20-24)
STOCKS
Wall Street indices fell after the Fed meeting as investors were upset despite a dovish rate hike. As expected, the central bank raised rated by just 0.25%, while at the same time acknowledging issues in the banking sector, thus spooling market participants. Adding to the pressure in the stock market, were comments from Treasury Secretary Janet Yellen, who noted that the US was not currently working on a so-called blanket insurance for bank deposits. The next day, however, equities clawed back some of the previous losses as investors attempted to shake off concerns about banking-sector stability. Markets derived some support from Yellen’s fresh comments as she said the federal government would take extra steps to stabilize the US banking system if necessary. As such, the S&P 500 gained 0.3%, the Dow Jones Industrial Average climbed 0.23%, and the Nasdaq Composite rose by 1% on Thursday.
24.03.2023
1138
Weekly Review (March 13-17)
STOCKS
Earlier in the week, US stocks clawed back some of their losses in the wake of the Silicon Valley Bank fallout that made US regulators create a plan to backstop all depositors in the bank. The sentiment also improved after key inflation data came in line with expectations. CPI showed prices rose 6.0% in February over the last year, the smallest increase since September 2021. Core inflation, which strips out food and energy, grew 5.5%, also in line with forecasts. Investor optimism reemerged on Thursday after a group of banks said it would aid First Republic Bank. Also, the sentiment is buoyed by hopes that the bank crisis could push the Fed to shift its outlook on monetary policy at the meeting due next week. Traders had gone back to expecting a 0.25% rate increase, citing the emerging bank crisis that could overshadow the need to fight the elevated inflation in the United States. On Thursday, Dow Jones Industrial Average index added 1.17%, the S&P 500 gained 1.76%, and the Nasdaq Composite advanced 2.48%. All three indexes are on pace to end the week higher, led by the Nasdaq with more than a 5% advance.
17.03.2023
1172