News

Market Snapshot: Stocks erase early bounce, with Dow set for longest losing streak since 1932

0

U.S. stocks were attempting to end another brutal week with a bounce on Friday, with sentiment getting a lift from a cut in one of China’s key lending rates, though the Dow Jones Industrial Average remained on track for its longest weekly losing streak since 1932.

How are stocks trading?
  • The Dow Jones Industrial Average
    DJIA,
    +0.50%

    rose 206 points, or 0.6%, to 31,460.
  • The S&P 500
    SPX,
    +0.70%

    was up 32 points, or 0.8%, at 3,933.
  • The Nasdaq Composite
    COMP,
    +0.80%

    gained 112 points, or 1%, to trade at 11,501.

On Thursday, the Dow industrials and S&P 500 booked their lowest closes since March 2021, according to Dow Jones Market Data. The Dow finished more than 15% below its Jan. 4 record finish, while the S&P 500 ended 18.7% below its Jan. 3 record —- not far off the 20% threshold that marks a bear market.

Read: Selloff puts S&P 500 on bear market’s doorstep. If history is a guide, there’s more pain ahead.

What’s driving markets?

Wall Street took a cue from a strong Asian session, where the Hong Kong Hang Seng
HSI,
+2.96%

rallied 2.9% and the China CSI 300 index
000300,
+1.95%

gained 1.9%.

The People’s Bank of China on Friday cut in its rate on five-year loans, aimed at shoring up weak housing sales by cutting mortgage costs. The country has been battling COVID outbreaks, with lockdowns in industrial hubs such as Shanghai blamed for weak factory and consumer activity data in April.

“The news out of China and the successful test of the S&P 500 holding support is poised to pull the index out of the danger zone. We reiterate; for now, we think the market has placed in a bottom,” Peter Cardillo, chief market economist at Spartan Capital, told clients in a note.  

He noted the index came close to that support level of 3,850, but didn’t get there, instead hovering around 3,860.

Major U.S. stock indexes are likely facing yet another week of losses. The Dow industrials is set for its eighth-straight weekly loss, which would be its longest since April 1932, according to Dow Jones Market Data.

Losses have come amid concerns about whether soaring inflation can be brought under control by the Federal Reserve without derailing the economy.

Major retailers this week, such as Walmart
WMT,
+0.71%

and Target
TGT,
+0.37%

reported disappointing profits, against a backdrop of rising expenses and inflation.

Read: Swiss running shoe company On Holding runs with premium pricing despite inflation

The U.S. economic data calendar is empty for Friday, but next week will bring another round of inflation data, personal consumption expenditure prices excluding food and energy.

Which companies are in focus
How are other assets trading?
  • The yield on the 10-year Treasury note 
    TMUBMUSD10Y,
    2.850%

    edged down 0.5 basis point to 2.848%. Yields and debt prices move opposite each other.
  • The ICE U.S. Dollar Index 
    DXY,
    +0.28%

    rose 0.2%
  • Bitcoin 
    BTCUSD,
    +0.28%

    was off 0.8% near $30,100.
  • Oil futures rose, with the U.S. benchmark 
    CL.1,
    +0.49%

    up 0.7% near $111 a barrel. Gold futures 
    GC00,
    -0.27%

    were flat near $1,841.
  • The Stoxx Europe 600 
    SXXP,
    +1.37%

     rose 1.4%, while London’s FTSE 100 
    UKX,
    +1.66%

    rose 1.7%.

Market Extra: A bear-market rally could be lurking, but investors should ‘sell any rips,’ says Bank of America

Previous article

The Margin: Red Power Ranger actor charged for role in $3.5 million stimulus fraud scheme, faces 20 years in federal prison

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in News