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Stocks rise sharply throughout the day and week, while copper falls further

Stocks rise sharply throughout the day and week, while copper falls further
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  • S&P 500 has biggest daily percentage gain since May 2020
  • Copper falls again, oil rises
  • Treasury rates rose

NEW YORK, June 24 (Reuters) – Stocks in global markets rose on Friday and posted strong gains this week as the latest drop in commodity prices eased concerns about the outlook for inflation and rate hikes.

The S&P 500 climbed 3.1% for its biggest daily percentage gain since May 2020, and the MSCI global index is up 4.8% this week after falling for three consecutive weeks. Read more

US Treasuries rose from a two-week low.

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Investors worry that aggressive rate hikes by the Federal Reserve and other major central banks to fight inflation will cause a recession, which in turn will reduce demand for commodities and other items.

“The (stock) market has been oversold this week, so it’s time to jump in,” said Quincy Krosby, chief equity strategist at LPL Financial in Charlotte, North Carolina.

“We’ve seen oil prices fall along with prices for other commodities,” he added, adding that the market’s movement “reflects expectations of at least a marked slowdown, if not certainly a recession.”

Also, Krosby said the University of Michigan’s consumer confidence survey reading on five-year inflation expectations is positive for stocks. It fell to 3.1 from the preliminary estimate of 3.3% in mid-June. Read more

Last week, the S&P 500 index confirmed the bear market.

Dow Jones Industrial Average (.DJI) The S&P 500 rose 823.32 points, or 2.68%, to 31,500.68. (.SPX) It gained 116.01 points, or 3.06%, to 3,911.74 on the Nasdaq Composite. (.IXIC) Added 375.43 points, or 3.34%, to 11,607.62.

During the week, the S&P 500 rose 6.4%, the Dow 5.4% and the Nasdaq 7.5%.

Pan-European STOXX 600 index (.STOXX) It rose 2.62% and MSCI’s global stock benchmark (.MIWD000000PUS) It won 2.63%.

Benchmark copper on the London Metal Exchange was 0.5% lower at $8,367 a tonne after hitting $8,122.50, down 25 percent from a March peak and the lowest level since February 2021. Read more Other industrial metals also fell.

Oil prices rose on Friday, but recorded their second weekly decline. Read more

On that day, Brent crude was up $3.07, or 2.8%, to $113.12 a barrel, while US West Texas Intermediate crude was up $3.35, or 3.2%, to $107.62.

Treasury yields fell from the highest level in more than a decade reached before last week’s Fed meeting. The US central bank raised interest rates by 75 basis points at the meeting.

Fed fund futures traders are pricing in a rise in the benchmark rate to about 3.5% by March, down from expectations it will rise to about 4% last week. ,

Benchmark 10-year returns were last at 3.125%. It fell from 3.498% on 14 June to the highest level since April 2011.

In the foreign exchange market, the US dollar made its first weekly decline this month.

In the afternoon’s trade in New York, the dollar index, which measures the US unit against six major currencies, fell 0.2% to 104,013. Read more

The decline of the US dollar even supported commodity-focused currencies such as the Australian dollar and the Norwegian crown. The Australian Dollar was up 0.8% to US$0.6946.

Spot gold rose 0.2% to $1,826.39 an ounce.

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Reporting by Caroline Valetkevitch in New York Additional reporting by Karen Brettell in New York and Carolyn Cohn in London Editing by David Gregorio and Matthew Lewis

Our standards: Thomson Reuters Trust Principles.

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