The US stock market closed a little higher on Friday, ending the week’s mediocre market performance. There were few catalysts affecting the market, and the market continued to worry about whether the current surge in inflation would continue and lead to the Federal Reserve Board (FED/Federal Reserve) tightened its dovish policy earlier than expected. Among the three major stock indexes, the Nasdaq rose the most, and the benchmark S&P 500 index set a new closing high for the second day in a row.
This week, the S&P 500 and Nasdaq rose, while the Dow recorded a slight weekly decline.
However, the stock index has been oscillating within a narrow range, and few catalysts can affect investor sentiment. The market focus is mainly on the Consumer Price Index (CPI) released on Thursday, which eases concerns about the duration of the current inflation wave.
“Today is a quiet day,” said Oliver Pursche, senior vice president of Wealthspire Advisors in New York. “Summer is coming. People have finished their work early. There is no news that will give a substantial boost to market trends.” “Therefore, investors will wait for the earnings season.” The Fed has repeatedly stated that recent price spikes will not translate into persistent inflation. The Consumer Confidence Report released by the University of Michigan on Friday also reflects this view. The report shows that inflation expectations have fallen after rising sharply last month.
Investors are now drawing their focus to the Fed’s statement at the end of the two-day monetary policy meeting next week. People will analyze it carefully to find clues about the Fed’s interest rate hike schedule. Pursche further added, “We still believe that the inflation data is temporary, and this year’s inflation rate will be around 2%.” The benchmark U.S. Treasury yield (yield rate) recorded its most significant weekly decline in nearly a year, putting pressure on the interest-sensitive financial sector in recent days.
The U.S. Food and Drug Administration (FDA) is receiving more and more criticism for its “accelerated approval” of Biogen’s Alzheimer’s drug Aduhelm because there is no substantial evidence that the drug can combat this disease.
Biogen shares fell 4.4%, and healthcare stocks closed 0.7% lower. The Dow Jones Industrial Index rose 13.36 points to 34,479.6 points, or 0.04%; the S&P 500 index rose 8.26 points, or 0.19%, to 4,247.44 points; the Nasdaq index rose 49.09 points, or 0.35%, to 14,069.42 points.
Out of the eleven major sectors of the S&P 500 index, financial stocks and technology stocks led the gains, while the healthcare sector saw the largest percentage drop. This week’s trading volume is mainly attributable to the continued hot speculation of social media-driven “net red stocks,” that is, retail investor’s flock to buy a large number of short-selling stocks. However, the trend of Internet celebrity stocks on Friday was more moderate, with AMC Entertainment leading the way, rising 15.4%. Approximately 9.11 billion shares were traded on US stock exchanges, while the mean daily trading volume over the past 20 trading days was 10.56 billion shares. The number of stocks to losers on the New York Stock Exchange was 1.83:1, and that on the Nasdaq market was 1.7:1. 33 S&P 500 index constituent stocks hit a 52-week high; one constituent stock hit a new low; 108 Nasdaq index constituent stocks hit a new high, 16 hit a new low. (End) (Compiled by Liu Jing; Revised and Revised Mother Red)