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U.S. stocks ended mostly higher on Thursday, snapping their three-day losing streak, as investors digested fresh comments from Fed Chair Jerome Powell who once again hinted that the central bank is still not done with its tightening cycle and would go for more hikes. The S&P 500 and Nasdaq closed in the green but the Dow ended marginally in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slid less than 0.1% or 4.81 points to end at 33,946.71 points. The four-day losing streak of the blue-chip index’s longest losing streak since it suffered a five-session decline ending on May 25.
The S&P 500 gained 0.4% or 16.20 points to finish at 4,381.89 points. Tech and consumer discretionary stocks rebounded to lead the rally on Thursday.
The Technology Select Sector SPDR (XLK) rose 0.8%. The Consumer Discretionary Select Sector SPDR (XLY) gained 1.3%. However, six of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq advanced 1% or 128.41 points to end at 13,630.60 points.
The fear-gauge CBOE Volatility Index (VIX) was down 2.20% to 12.91. Decliners outnumbered advancers on the NYSE by a 2.17-to-1 ratio. On Nasdaq, a 1.62-to-1 ratio favored declining issues. A total of 9.60 billion shares were traded on Thursday, lower than the last 20-session average of 11.37 billion.
Tech Stocks Rebound to Lead Rally
Stocks took a breather earlier this week after hitting 14-month highs recorded by the Nasdaq and S&P 500 last week following the Fed’s decision to keep interest rates unaltered as inflation showed signs of easing.
On Thursday, tech stocks once again rallied after the brief pause, helping the broader market. This came despite Fed Chair Jerome Powell suggesting that the central bank is still not done with its tightening cycle as the fight to bring down inflation is not over.
Powell had earlier said that the Fed will need to increase interest rates by another 50 basis points by the end of this year. He maintained his hawkish stance on Thursday. Despite this, tech stocks rallied.
It has been a great year for the tech sector despite a series of interest rate hikes, thanks to the enthusiasm around artificial intelligence, which has helped a handful of big tech names.
Investors are also keeping a close eye on the moves being made by other European central banks. The Bank of England hiked interest rates by 50 basis points on Thursday. Economists had expected a 25-basis point hike.
Norway’s central bank also raised interest rates by half a percentage point on Thursday and warned of more hikes in the near term. The Swiss National Bank also went for an interest rate hike on Thursday.
Economic Data
In economic data released on Thursday, the National Association of Realtors said that existing home sales rose 0.2% month over month in May to 4.3 million units. However, the median price for existing homes dropped 3.1%, the biggest decline since December 2011.
In other economic data, the Labor Department reported that jobless claims totaled 264,000 for the week ending Jun 17, unchanged from the previous week’s unrevised level. The previous week’s level was revised up by 2,000 to 264,000. The four-week moving average was 255,750, an increase of 8,500 from the previous week’s revised average of 260,000.
Continuing claims came in at 1,759,000, a decrease of 13,000 from the previous week’s revised level of 1,772,000. The 4-week moving average was 1,770,000 a decrease of 7,500 from the previous week's revised average of 1,777,500.
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Stock Market News for Jun 23, 2023
U.S. stocks ended mostly higher on Thursday, snapping their three-day losing streak, as investors digested fresh comments from Fed Chair Jerome Powell who once again hinted that the central bank is still not done with its tightening cycle and would go for more hikes. The S&P 500 and Nasdaq closed in the green but the Dow ended marginally in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slid less than 0.1% or 4.81 points to end at 33,946.71 points. The four-day losing streak of the blue-chip index’s longest losing streak since it suffered a five-session decline ending on May 25.
The S&P 500 gained 0.4% or 16.20 points to finish at 4,381.89 points. Tech and consumer discretionary stocks rebounded to lead the rally on Thursday.
The Technology Select Sector SPDR (XLK) rose 0.8%. The Consumer Discretionary Select Sector SPDR (XLY) gained 1.3%. However, six of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq advanced 1% or 128.41 points to end at 13,630.60 points.
The fear-gauge CBOE Volatility Index (VIX) was down 2.20% to 12.91. Decliners outnumbered advancers on the NYSE by a 2.17-to-1 ratio. On Nasdaq, a 1.62-to-1 ratio favored declining issues. A total of 9.60 billion shares were traded on Thursday, lower than the last 20-session average of 11.37 billion.
Tech Stocks Rebound to Lead Rally
Stocks took a breather earlier this week after hitting 14-month highs recorded by the Nasdaq and S&P 500 last week following the Fed’s decision to keep interest rates unaltered as inflation showed signs of easing.
On Thursday, tech stocks once again rallied after the brief pause, helping the broader market. This came despite Fed Chair Jerome Powell suggesting that the central bank is still not done with its tightening cycle as the fight to bring down inflation is not over.
Powell had earlier said that the Fed will need to increase interest rates by another 50 basis points by the end of this year. He maintained his hawkish stance on Thursday. Despite this, tech stocks rallied.
Shares of Apple Inc. ((AAPL - Free Report) ) gained 1.7%, while Microsoft Corporation ((MSFT - Free Report) ) and Meta Platforms, Inc. ((META - Free Report) ) rose 1.8% and 1.2%, respectively. Apple has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here.
It has been a great year for the tech sector despite a series of interest rate hikes, thanks to the enthusiasm around artificial intelligence, which has helped a handful of big tech names.
Investors are also keeping a close eye on the moves being made by other European central banks. The Bank of England hiked interest rates by 50 basis points on Thursday. Economists had expected a 25-basis point hike.
Norway’s central bank also raised interest rates by half a percentage point on Thursday and warned of more hikes in the near term. The Swiss National Bank also went for an interest rate hike on Thursday.
Economic Data
In economic data released on Thursday, the National Association of Realtors said that existing home sales rose 0.2% month over month in May to 4.3 million units. However, the median price for existing homes dropped 3.1%, the biggest decline since December 2011.
In other economic data, the Labor Department reported that jobless claims totaled 264,000 for the week ending Jun 17, unchanged from the previous week’s unrevised level. The previous week’s level was revised up by 2,000 to 264,000. The four-week moving average was 255,750, an increase of 8,500 from the previous week’s revised average of 260,000.
Continuing claims came in at 1,759,000, a decrease of 13,000 from the previous week’s revised level of 1,772,000. The 4-week moving average was 1,770,000 a decrease of 7,500 from the previous week's revised average of 1,777,500.