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S&P 500 rises slightly but stays below 3700 after a stormy trading week

  • US stocks recovered some ground after a bumpy trading week.
  • The Nasdaq Composite rose and led the pack, followed by the S&P 500, while the Dow Jones fell.
  • The US Dollar Index rose, contrarily to US Treasury yields dropping

US equities recovered some ground after a rough trading week and recorded gains between 0.13% and 1.43% on Friday as investors assessed the Federal Reserve’s monetary policy decision, which hiked rates by 75 bps and reiterated its commitment that the central bank needs to do more to curb the hottest inflation in 4 decades.

Sentiment shifted positive, though failed the lift the Dow Jones

The S&P 500 rose 0.22% and finished at  3,674.84, followed closely by the heavy-tech Nasdaq Composite, jumping 1.43% at 10,798.35. At the bottom of the pile is the Dow Jones Industrial Average, which slipped 0.13%, sitting at 29,888.78.

In the meantime, the US Dollar Index rose after falling from a fresh 20-year high and sits around 104.650, up by 0.82%. US Treasury yields remain elevated but tumbled. The US 10-year note yields 3.231%, down seven basis points.

The market sentiment is positive but remains fragile. During the week, US economic data fell short of estimations, from May retail sales to housing starts. Additionally, the Federal Reserve hiked the Federal funds rate (FFR), with the largest increase since the times of Fed Chair Alan Greenspan in 1994.

In terms of sector specifics, the leading gainers are Communication Services, up 1.31%, followed by Consumer Discretionary and Technology, each recording gains of 1.22% and 0.99%, respectively. The main losers are Energy, Materials, and Consumer Staples, losing 1.45%, 0.05%, and 0.01% each.

In the commodities complex, the US crude oil benchmark, WTI, tumbled 6.05%, trading at $110.48 BPD, while precious metals like gold (XAU/USD) followed suit, dropping 0.43%, exchanging hands at $1841.90 a troy ounce, as US Treasury yields, remained static after the FOMC’s decision.

Key Technical Levels

 

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