The S&P 500 hugged the flatline Friday but remained on track to notch its third consecutive week of gains.
The broad stock-market gauge pared its early advance and slipped less than 0.1% in recent trading, a day after closing at a high. The Dow Jones Industrial Average lost 45 points, or roughly 0.1%. The Nasdaq Composite added 0.1%.
The S&P 500 and Nasdaq are on course for modest weekly gains, while the Dow is poised for a slight loss.
Meanwhile, market volatility has continued to edge lower. The Cboe Volatility Index fell to 15.51 in recent trading, on track to close below 16 for the first time since February 2020, before the coronavirus pandemic rattled markets.
Major indexes are hovering near all-time highs, leaving investors looking for any catalysts that may propel the next leg in what has been a sharp rally since the March 2020 rout. Fresh spending plans by the Biden administration that could result in higher taxes, as well as stocks’ high valuations and the emergence of new Covid-19 variants, are making people more cautious. Money managers are also weighing whether the rise in inflation is likely to be transitory.
“We’re still positive on the outlook, but we’re not as optimistic as we were three months ago,” said Daniel Morris, chief market strategist at BNP Paribas Asset Management. “The market needs to take a breather and let earnings catch up to where prices are.”
Meme stocks have continued to record sharp swings this week even as the broader markets have been calmer. Clover Health jumped around 6%. GameStop lost roughly 3%.
In bond markets, the yield on the 10-year Treasury note hovered around 1.464%, on track to fall for the fourth consecutive week. Yields fall when bond prices rise. Yields have been dragged down this week by tepid economic data and high demand from investors both in the U.S. and elsewhere.
The concurrent rally in the stock and bond markets has also stoked worries about a rapid reversal in both. The correlation between an exchange-traded fund tracking Treasurys, the iShares 20+ Year Treasury Bond ETF, and the tech-heavy Nasdaq-100 index is at a 15-year high, according to JPMorgan Chase & Co.
The Labor Department on Thursday said the U.S. economic rebound is driving the biggest surge in inflation in nearly 13 years, with consumer prices rising in May by 5% from a year ago. Investors have been concerned for some weeks that a sharp and sustained rise in inflation may prompt the Fed to weigh ending its easy money policies in coming quarters.
Major indexes are hovering near highs, leaving traders looking for the next catalyst that could move markets.
Photo: Nicole Pereira/Associated PressMore recently, the market’s inflation expectations have abated, but it remains a focus point for many people. Fresh data released Friday showed that consumer sentiment in the U.S. rose in early June, beating expectations, while inflation expectations eased.
“Inflation clearly is the big risk out there,” said Edward Park, chief investment officer at U.K. investment firm Brooks Macdonald. “Some of the teeth have been softened over the last 24 hours, but there is still the risk that the Fed comes out and says maybe this is more sustained, and that changes the narrative, so central banks are still very much a thing to watch.”
Overseas, the pan-continental Stoxx Europe 600 rose around 0.7% after closing Thursday at an all-time high.
Major stock indexes in Asia closed on a mixed note. The Shanghai Composite Index declined 0.6%. South Korea’s Kospi Index rose 0.8%, while Hong Kong’s Hang Seng Index added 0.4%.
—Gunjan Banerji contributed to this article.
Write to Caitlin Ostroff at caitlin.ostroff@wsj.com
Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
The Link LonkJune 11, 2021 at 11:03PM
https://www.wsj.com/articles/global-stock-markets-dow-update-06-11-2021-11623397120
S&P 500 Pares Gains, Aims for Fresh Record - The Wall Street Journal
https://news.google.com/search?q=fresh&hl=en-US&gl=US&ceid=US:en
No comments:
Post a Comment