Wall Street ended but still down for the week as volatility rules

  • Standard & Poor’s suffers biggest weekly percentage drop since March 2020
  • Markets are closed on Monday for the Juneteenth holiday
  • The Dow Jones is down 0.13%, the S&P 500 is up 0.22% and the Nasdaq is down 1.43%.

(Reuters) – U.S. stocks closed modestly higher on Friday but still suffered their biggest weekly percentage decline in two years as investors grappled with the growing possibility of a recession as global central banks try to stamp out inflation.

Stubbornly high inflation has alarmed investors this year as the US Federal Reserve and most major central banks begin to switch from easy monetary policies to tightening measures that will slow the economy, potentially causing a recession and potentially eroding corporate earnings.

Each of Wall Street’s three major indices fell for the third week in a row. Standard S&P 500 Index (.SPX) It suffered the largest weekly percentage drop since March 2020, the peak of the COVID-19 pandemic decline.

Register now to get free unlimited access to Reuters.com

“Right now, you’re going to see a lot of volatility and that will primarily be due to the fact that the Fed is going to be holding all these price hikes and just trying to gauge the inflation picture and it’s very dark,” said Megan Hornman, director of portfolio strategy at Verdence Capital Advisors in Hunt Valley, Maryland. “right Now”.

“Just anticipate the volatility, they are here to stay, and they will be here until we get more clarity on whether we’ve really hit peak inflation.”

Dow Jones Industrial Average (.DJI) The Standard & Poor’s 500 Index fell 38.29 points, or 0.13 percent, to 29,888.78 points (.SPX) The index rose 8.07 points, or 0.22%, to 3,674.84 points, and the Nasdaq Composite (nineteenth) It added 152.25 points, or 1.43%, to 10,798.35 points.

Over the week, the Dow lost 4.79%, the biggest weekly percentage drop since October 2020, the S&P 500 lost 5.79% and the Nasdaq fell 4.78%.

The benchmark Standard & Poor’s is down about 23% year-to-date and recently confirmed that a bear market started on January 3. The Dow Industries was on the cusp of confirming its bear market.

Stocks rose on Wednesday after the Federal Reserve raised its key interest rate by 75 basis points, the biggest rise in nearly three decades, while the Bank of England and the Swiss National Bank also raised borrowing costs. Read more

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, US, June 14, 2022. REUTERS/Brendan McDermid/File Photo
Reuters graphics

On Friday, Federal Reserve Chairman Jerome Powell reiterated the central bank’s focus on returning inflation to its 2% target while speaking at a conference. Read more

Friday’s economic data showed that production at US factories fell unexpectedly in the latest indication that economic activity was waning. Read more

Telecom services led the gains (.SPLRCL) and consumer appreciation (.SPLRCD) The sectors that rose 1.31% and rose 1.22% respectively during the session. These two groups were among the worst performing groups during the year out of the 11 major groups.

On the other hand, energy (.SPNY)The best-performing sector for the year, down 5.57% and suffering its biggest weekly percentage drop since March 2020, fell due to concerns about a global economic slowdown that could dampen demand for crude oil. Read more

Also contributing to the trading volatility was the expiration of monthly and quarterly options contracts ahead of the Juneteenth market holiday on Monday. Read more

Volume on US exchanges reached 17.99 billion shares, compared to an average of 12.42 billion sessions over the last 20 trading days.

Advance issues outnumbered losers on the New York Stock Exchange by 1.37 to 1; On the Nasdaq, the ratio was 1.92 to 1 in favor of advanced traders.

The S&P 500 hit a new 52-week high and 57 new lows; The Nasdaq recorded 11 new highs and 259 new lows.

Register now to get free unlimited access to Reuters.com

(Reporting by Chuck Mikolajchak) Editing by Richard Chang

Our criteria: Thomson Reuters Trust Principles.

.