S&P 500 (SP500) on Friday down 1.39% To close the abbreviated week at 4348.37 points, recording losses in three out of four sessions. Associated SPDR S&P 500 Trust ETF (New York: The Spy) decreased 1.42% for the week.
The five-week benchmark cutoff Winning streak as sentiment was hit by interest rate concerns. This past week was a particularly strong one for the S&P 500 (SP500) as it is earned More than 2.5% after the Federal Reserve held interest rates steady for the first time after its 10 consecutive hikes.
Some of the decline this week was also technical in nature, as the S&P 500 (SP500) reached resistance levels. Last week, the index jumped above the 4,400-point mark for the first time since April last year. After a limited trading range between 3,800 points and 4,200 points since January, the benchmark’s rise from 4,200 to 4,400 was swift.
This week, Federal Reserve Chairman Jerome Powell, in his two-day testimony before the House and Senate on Wednesday and Thursday, respectively, reiterated his forecast that more rate hikes will be needed this year to combat inflationary pressures. Moreover, overseas central banks have also sent hawkish signals, with the UK, Norway And turkey All hiking rates.
“Global markets have continued to struggle over the past 24 hours, with fresh sell-off in sovereign bonds and more declines in equities in most regions. Several factors were behind this, but the biggest was the dawning realization for investors that central banks are ready for this,” said Jim Reed of Deutsche. Bank: “They continued to raise interest rates in the second half of the year, especially after a surprise move of 50 basis points from the Bank of England.”
(Powell) repeated the message that officials felt it was appropriate to raise interest rates by the end of the year, noting that the “vast majority” of the FOMC saw two more hikes. So Powell was stressing the Fed’s hawkish plot for June even more. Who did it at the press conference after the FOMC meeting last week.”
Economic data this week continued to show a slowdown in the economy, although it also indicated resilience in the labor market. Readings of the Kansas Fed Composite Index and Manufacturing Index for June worsened from the previous month, with the latter reaching levels previously only reached in US recessions. Meanwhile, the number of Americans filing for benefits remained at its highest level since October 2021.
There were a few notable companies reporting their results this week. Package delivery giant FedEx (FDX) reported lower global volume and lower-than-expected quarterly revenue. Information technology and advisory services company Accenture (ACN) exceeded expectations and raised its bottom line on full-year earnings guidance. Carmax Used Car Retailing (KMX) Top & Bottom came in the highest ratings. Next week will see results from companies like Nike (NKE), Micron Technology (MU), and General Mills (GIS).
Turning to the weekly performance of the 11 S&P 500 (SP500) sectors, all of them declined except for the healthcare sector, which ended up slightly higher. Real estate and energy led losers. See below a breakdown of the weekly performance of sectors as well as sector ETFs accompanying the SPDR from the June 16th close to the June 23rd close:
No. 1: healthcare +0.24%and an SPDR ETF (XLV) for the healthcare sector -0.16%.
No. 2: Consumer discretion -0.02%Consumer Discretionary Sector SPDR ETF (XLY) -0.56%.
#3: Consumer staples -0.45%Consumer Staples Select Sector SPDR ETF (XLP) -1.19%.
No. 4: Communication services -0.76%SPDR Telecom Sector Selection Fund (XLC) -1.08%.
No. 5: Industries -1.65%Industry Specific SPDR ETF (XLI) -2.06%.
Figure 6: Materials -1.96%Materials Identification Sector SPDR ETF (XLB) -2.54%.
No. 7: Financial statements -2.02%and a SPDR ETF (XLF) in the selected financial sector -2.50%.
No. 8: IT -2.03%Technology Select Sector SPDR ETF (XLK) -2.62%.
#9: Utilities -2.59%Sector Selected Utilities SPDR ETF (XLU) -3.37%.
No. 10: Energy -3.45%Energy Sector SPDR ETF (XLE) -4.33%.
No. 11: real estate -4.03%Sector Selected Real Estate SPDR ETF (XLRE) -4.86%.
Below is a chart of 11 sectors’ year-to-date performance and how they fare compared to the S&P 500. For investors looking to the future of what happens, take a look at Alpha Catalyst Watch for next week’s breakdown of the actionable events that stand out.
