Benchmark US indices closed the week mixed on Friday, June 17, as mega-cap growth stocks rallied, shaking off the negative sentiments about inflation and declining economic growth.
The S&P 500 was up 0.22% to 3,674.84. The Dow Jones lost 0.13% to 29,888.78. The NASDAQ Composite rose 1.43% to 10,798.35, and the small-cap Russell 2000 was up 0.96% to 1,665.69.
It was a volatile week for the market, opening the first session with a rude shock on the inflation front. Stocks tumbled after CPI data late Friday revealed that May inflation climbed 8.6% annually.
Alarmed over the situation, the Federal Reserve raised the interest rates by 75 basis points on Wednesday, higher than its planned increase of half a percentage point in June.
Its previous hikes in March and May seemed to have had little impact on CPI growth.
After Fed’s move, the central banks of Britain and Switzerland have also increased their rates. Investors now fear a recession could be looming, expecting that rate rises could further slowdown growth.
In the energy market, oil prices fell to a four-week low on Friday. Global benchmark Brent crude futures fell more than 5% to around US$113 in intraday trading.
Of the 11 sectors of the S&P 500, eight stayed in the positive territory. Communication, technology, and consumer discretionary sectors were top gainers. Energy and utility were the bottom movers.
Shares of Seagen Inc. (SGEN) increased by more than 15% after Wall Street Journal reported that Merck & Co (MRK) is in talks to acquire the biotechnology firm. The MRK stock fell 0.48% in intraday trading.
Pharma major Moderna, Inc. (MRNA) stock rose 4.62% after the Food and Drug Administration (FDA) approved its Covid-19 shots for children as young as six months, but shares of Pfizer Inc. (PFE) plummeted 1.97% after receiving a similar nod for its children’s drug from the agency.
Shares of Adobe Inc. (ADBE) plunged 0.78% a day after providing weak guidance for fiscal 2022.
In the communication services sector, Alphabet Inc. (GOOGL) increased by 1.05%, Meta Platforms, Inc. (META) gained 1.78%, and Comcast Corporation (CMCSA) surged 2.11%. T-Mobile US, Inc. (TMUS) and AT&T (T) advanced 2.66% and 2.00%, respectively.
In technology stocks, Apple Inc. (AAPL) rose 1.15%, Microsoft Corporation (MSFT) added 1.09%, and NVIDIA Corporation (NVDA) jumped 1.79%. ASML Holding N.V. (ASML) and Accenture plc (ACN) ticked up 1.11% and 1.65%, respectively.
In the energy sector, Exxon Mobil Corporation (XOM) decreased by 5.80%, Chevron Corporation (CVX) declined 4.64%, and Shell plc (SHEL) fell 4.71%. TotalEnergies SE (TTE) and ConocoPhillips (COP) slumped by 4.79% and 8.47%, respectively.
In the crypto space, Bitcoin (BTC) and Ethereum (ETH) plunged by 0.07% and 0.39%, respectively. The global crypto market cap tumbled 0.40% to US$897.87 billion at 4:44 pm ET on June 17.
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Futures & Commodities
Gold futures were down 0.35% to US$1,843.50 per ounce. Silver decreased by 1.05% to US$21.655 per ounce, while copper fell 2.13% to US$4.0207.
Brent oil futures decreased by 5.43% to US$113.31 per barrel and WTI crude was down 6.47% to US$109.98.
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The 30-year Treasury bond yields were down 2.37% to 3.281, while the 10-year bond yields fell 2.23% to 3.231.
US Dollar Futures Index increased by 0.97% to US$104.422.
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