Wednesday, June 8, 2022

US Market Wrap 06/08/2023

- Stocks in the United States slumped after a two-day surge, while oil prices continued to rise, raising concerns about inflation and central bank actions to combat it.

- All but 1 of the 11 major sectors in the S&P 500 ended near session lows. After climbing as high as 0.5%, the tech-heavy Nasdaq 100 fell 0.8%. After Intel's (INTC) chief financial officer acknowledged the current quarter wasn't going as smoothly as expected, chipmakers were under fire. The stock dropped more than 5%, while the Philly semiconductor index dropped about 2%.

- Losses widened as the SEC's chairman hinted at changes to market rules, the agency's most concrete response yet to last year's manic trading in Gamestop (GME) and other meme stocks.

- Benchmark government yields have surpassed the psychologically significant 3% level. As inventory data emphasised the supply issue, oil soared beyond $120 per barrel.

- Concerns that higher rates will impede economic growth and undercut business earnings have kept confidence shaky. The European Central Bank is anticipated to end trillions of euros in asset purchases on Thursday, paving the way for a rate hike in July, while data on US consumer prices later this week is expected to keep pressure on the Federal Reserve to raise rates.

- On Friday, the US Consumer Price Index is projected to reveal that inflation increased in May from a month earlier, while dropping slightly from a year earlier but remaining above the 8% level. This is expected to keep the Fed under pressure to maintain its aggressive rate hikes.