The core PCE price index, an inflation indicator of great concern to the Fed, posted the fastest year-over-year growth rate in nearly three decades, but Fed officials continue to downplay the impact of recent high inflation: Minneapolis Fed President Kashkari said some of the price increases may be temporary; Boston Fed President Rosengren said the uptick in inflation is not surprising, that the uptick will be temporary and that inflation may not be a problem in 2022 to 2023 become a problem.
Major U.S. stock indexes opened collectively higher despite high inflation indicators, with the financial sector continuing to lead gains, but technology stocks retreated. During the session, the Nasdaq turned lower after being dragged down by leading technology stocks such as Tesla, which was liquidated by battery supplier Panasonic for more than a decade. Nike, which reported fourth-quarter revenue after the bell on Thursday that exceeded expectations and had a strong revenue contribution from China, surged to become the best-performing Dow component. Virgin Galactic (SPCE) shares soared after receiving approval from U.S. regulators to have the first-ever commercial license for private space flight. Many popular mid-cap stocks continue to outperform the broader market, but Daily Fresh (MF), the No. 1 fresh food e-commerce stock, is outperforming, unexpectedly breaking on its first day of listing in the U.S.
U.S. benchmark 10-year Treasury yields continued to rise after the release of the PCE price index and consumer confidence index, setting new one-week highs and also climbing cumulatively throughout the week, with longer-term U.S. bond yields rising even higher. The dollar index dived intraday after the PCE data release, and although U.S. stocks rallied intraday, they accumulated losses for the week.
The dollar fell intraday and precious metals gold and silver rallied. Copper continued to dip throughout the week, but copper and other industrial metals, as well as all precious metals, accumulated gains for the week after last week’s plunge. Investors remained optimistic about the global economic recovery, and international crude oil futures hit another new high this week since October 2018, maintaining a one-month trend of continued cumulative one-week gains.
Along with the intraday rally in the U.S. dollar, cryptocurrencies such as bitcoin extended their intraday losses, with several cryptocurrencies recording double-digit plunges this week.
In European markets, pan-European equity indices continued to rise, and like U.S. stocks, the financial sector led the way throughout the week. European bonds retreated in price on Friday, with yields rising on the day and for the week.
Dow and Nasdaq post biggest weekly gains in more than three months and more than two months respectively Financial sector continues to lead S&P Financials continue to lead S&P IT sector bucking market decline Mid-cap ETFs up nearly 2% Daily Value broke on its first day
The three major U.S. stock indexes, the S&P 500 and the Dow Jones Industrial Average generally opened higher, the Dow slightly up more than 300 points at midday when it hit a new intraday high since June 11, the S&P rose nearly 0.5% at midday when it hit a new intraday high for the second consecutive day; the Nasdaq Composite Index rose nearly 0.3% at the beginning of the session, hitting a new intraday high for the fourth consecutive day, but turned down more than once during the session, down more than 0.2% at midday when it set a new daily low. 0.2%.
In the end, the three major indices only the Nasdaq fell to close, the S&P and the Dow rose for two consecutive days. The Nasdaq closed down 0.06% at 14,360.39 points, falling off the record high set for three consecutive days as of Thursday. The S&P closed up 0.33% at 4280.7 points, closing at a record high for the second consecutive day. The Dow closed up 237.02 points, or 0.69%, at 34,433.84, a new record closing high since June 11.
Value stocks dominated by small-cap index Russell 2000 had risen more than 0.7% at midday, late retracted most of the gains, closing up 0.03%, the last three days for the first time to lose the S&P and the Dow. Technology stocks for the heavy Nasdaq 100 index closed down 0.14%, underperforming the broader market.
The major U.S. stock indexes all accumulated gains for the week. The Dow rose 3.44%, the largest weekly gain since the week of March 12, reversing a two-week losing streak, almost erasing all losses last week, down 3.45% last week, the largest decline since the week of October 30 last year; S&P rose 2.74%, the largest weekly gain since the week of February 5, the Nasdaq rose 2.35%, the largest weekly gain since the week of April 9, all erasing last week’s losses, last week S&P fell 1.9% to hit the biggest single-week decline since February 26 week; Russell 2000 rose 4.32%, all erased last week’s decline of more than 4%; Nasdaq 100 rose 2.1%, up six weeks in a row.
Dow components, Nike closed up 15.5% ahead, United Health, Merck, Procter & Gamble, Wal-Mart rose more than 1%; and Caterpillar fell more than 1%.
S&P 500 of the 11 major sectors, only down about 1% of the utilities and down more than 0.1% of the information technology two closed down, up in the sector, up more than 1.2% of the financial sector continues to lead, followed by up 0.8% of the essential consumer goods, the bottom of the materials and telecommunications services closed up less than 0.1%. This week, the financial and energy sectors led the gains, the largest weekly gain in finance since February, only the utilities sector tired down.
Most of the leading technology stocks fell, Tesla turned down during the session to close down nearly 1.2%, the last four days for the first time to close lower. FAANMG six major technology stocks, up more than 1.7% of the best performance of Nifty, down nearly 1.4% of the worst performance of Amazon, Microsoft fell more than 0.6% fell from the record high set on Thursday, Facebook fell more than 0.5%, Apple fell more than 0.2%, Google parent company Alphabet closed slightly higher.
Virgin Galactic (SPCE) jumped more than 18% higher and once rose nearly 42% during the day, closing up more than 38%.
Most popular Chinese stocks rose, Chinese ETFs KWEB and CQQQ both rose more than 1.9%, beating the broader market for three consecutive days, Alibaba, Jingdong rose 4%, Tucson Future rose nearly 4%, Baidu, Zhihu, ideal car rose more than 3%, Xiaopeng car, Tencent ADR rose more than 2%. Friday’s listing of the daily Youxiang opening price on 18% lower than the issue price, always in the breakout level during the day, closing down nearly 25.7%.
European stocks, the European Stoxx 600 index for two consecutive days since last Thursday’s record high, most of the major European countries stock indexes continued to rise on Friday, Germany, Britain, West and Italy stocks rose for two days in a row, but French stocks retracted some of Thursday’s gains.
The Stoke 600 rose more than 1% this week, the largest one-week gain since the week of May 7, erasing the largest weekly decline in three months set last week. The sectors were led by banks, which are sensitive to the economic recovery, up more than 2%. The week’s stock indexes were up, partially or fully erasing last week’s losses.
The 10-year U.S. bond yield hit a one-week high, rising more than 8 basis points this week
U.S. 10-year benchmark Treasury yields in the U.S. stocks before the market had been down to test 1.48% to refresh the daily low, U.S. stocks continued to move higher after the opening, U.S. stocks opened at about 1.49%, to the lunchtime once rose above 1.54%, back to last Thursday’s intraday level, up more than 6 basis points from the intraday low, to the U.S. stocks closed at about 1.52%, up 3 basis points during the day, this week’s cumulative rise of more than 8 basis points, erasing more than 6 basis points last week All of last week’s decline of more than 6 basis points.
U.S. bonds of all maturities, only 2-year prices rose and yields fell on Friday. By the end of New York, the 10-year and 30-year yields rose by more than 3 and 5 basis points, respectively, and the 2-year fell by 0.2 basis points, with the 30-year yield rising the most throughout the week, by more than 13 basis points, and the 2-year rose by more than 1 basis point.
European government bond prices fell collectively on Friday, ending a streak of gains, with Italian government bond yields rising 5.8 basis points a day to lead the rise. British 10-year benchmark Treasury yields rose 3.8 basis points during the day, at 0.778%; the same period, the German government bond yield 3.3 basis points, at -0.155%. This week, British bond yields rose 2.6 basis points, German bond yields accumulated 4.5 basis points, rising for two weeks.
The U.S. dollar index rebounded in a V-shape intraday and remained down for the whole week Bitcoin fell over 10% intraday and many cryptocurrencies fell over 10% for the week
After the release of the PCE data, the ICE US Dollar Index (DXY), which tracks the exchange rate of a basket of six major currencies of the US dollar, plunged during the European stock market and before the US stock market. The US stock market fell below 91.53 at the beginning of the session to refresh the intraday lows of the last two days, down more than 0.3% during the day, and started to rebound in the early morning session, turning up at lunchtime after once approaching 91.88 to refresh the daily high, up nearly 0.07% during the day, before falling back and turning down at the end of the day.
By Friday’s U.S. stock market close, the dollar index was slightly below 91.77, down slightly during the day, down more than 0.5% for the week, giving back some of last week’s gains, up more than 1.9% last week; Bloomberg Dollar Spot Index continued to close roughly flat, also down for the week, the largest weekly decline in two months, the first single-week cumulative decline in five weeks, last week’s largest weekly gain since April last year.
The offshore yuan (CNH) rose for three days after ending an eight-day losing streak. At 5:59 p.m. GMT on the 26th, the offshore yuan was trading at 6.4612 yuan against the dollar, up 97 points from Thursday’s end of trading in New York, having risen to 6.4520 during the day, further breaking out of the intraday trough since April 23 set by Wednesday’s drop below 6.49. This week’s cumulative gain was 4 points, ending a three-week losing streak.
Bitcoin (BTC) continued to fall on Friday, the U.S. stock market once narrowly fell below $ 31,500,000 at midday, refreshing the last three days intraday lows, compared with the early Asian market intraday highs fell to $ 4,000, a percentage drop of more than 11% U.S. stock market closed below $ 32,200,000, down more than 8% in the last 24 hours.
The second largest cryptocurrency after Bitcoin in terms of market capitalization, Ether (ETH), fell below $1,800 at midday in the U.S. stock market, also brushing a new three-day low, down more than 11% from the intraday high, closing at around $1,850 in the U.S. stock market, down more than 8% in 24 hours.
CoinMarketCap data shows that mainstream cryptocurrencies Friday, by the U.S. stock market close, the seventh and fourth largest cryptocurrencies by market capitalization Ripple (XRP) and coinancoin (BNB) both fell nearly 9% in the last 24 hours, the fifth largest cryptocurrency Cardano (ADA) fell nearly 7%, the 12th largest cryptocurrency Bitcoin Cash (BCH) fell more than 5%, the 13th largest cryptocurrency (LTC) fell nearly 5%, and the sixth largest cryptocurrency, Dogcoin (DOGE), fell more than 3%.
Many cryptocurrencies fell more than 10% this week, with XRP down nearly 20.8% in the last seven days, LTC down more than 16.8%, BCH down 16.5%, ETH down more than 15.4%, DOGE down more than 14.9%, BNB down more than 13.9%, BTC down nearly 10%, and ADA down more than 7.6%.
U.S. oil and Brewer’s oil hit more than two-and-a-half-year highs for two and four days this week, respectively. Natural gas hit another nearly two-and-a-half-year high for a week, up nearly 9%.
International crude oil futures closed up collectively for the third consecutive day, with U.S. WTI crude oil hitting a new high of more than two-and-a-half years for the second time this week and Brent crude oil hitting a new high of more than two-and-a-half years for the fourth day this week.
WTI August crude oil futures closed up 1.33% at $74.05 per barrel a new high for the month-ago contract since October 9, 2018, closing above $73 for the fifth consecutive day and hitting a new high on Monday since the 10th of the same month of the same year. Brent August crude oil futures closed up 1.31% at $76.18/barrel, rising above $76 for the first time this year, a new closing high for the spot contract since October 29, 2018, a new high since the 30th of the same month on Thursday, and a new high since the 31st of the same month on both Monday and Wednesday. For the week, U.S. oil rose 3.9%, and cloth oil rose 3.6%, the fifth consecutive week of cumulative gains.
NYMEX July gasoline futures closed down nearly 0.8% at $2.26/gallon, down from Thursday’s closing high for the month since October 2014, and up 4.4% for the week. cumulative gains of 8.7%.
Copper fell twice in a row but rose nearly 3% for the week Gold rallied for the first cumulative weekly gain in four weeks Platinum rose 6% for the week after five straight gains Palladium rose nearly 7% for the week
London base metals futures were mixed on Friday. Copper fell for the second day in a row, closing down $6 at $9,414 per ton, but closed above $9,400 for the third straight day. Zinc ended a four-day streak of gains and fell to a one-week high. Nickel and tin rose for five days in a row, with nickel hitting a new high of more than three-and-a-half months and tin hitting another one-week high. Aluminum, which closed flat on Thursday, hit a new one-week high. LunLead closed flat to stop three consecutive gains, still at a three-week high.
Base metals rose across the board this week, with copper up nearly 3%, rebounding after falling more than 8% last week for the biggest one-week drop in 13 months, and zinc, lead and tin all erased some of last week’s losses. Nickel and aluminum rose about 8% and 4%, respectively, erasing last week’s losses. New York copper futures also fell for two days in a row, up more than 3% for the week.
New York gold and silver futures rebounded slightly, COMEX August gold futures closed up nearly 0.1% at $1,777.80 per ounce, remained above $1,770 for the whole week, and did not hit a seven-week low after falling below $1,770 as it did last Friday.
This week’s cumulative gold rose about 0.5%, ending three consecutive weeks of cumulative losses, after last week’s cumulative decline of about 5.9%, the largest weekly decline since the end of last March.
COMEX July silver futures closed up 0.1%, closing above $26 for the third straight day, up nearly 0.5% for the week, after recovering a little from last week’s selloff, down 7.7% for the week.
Platinum closed up 0.9% for the fifth day in a row, hitting a new high for the third day in a row since last Wednesday, up about 6% for the week, bidding farewell to a three-week losing streak, down about 9.6% last week. Palladium ended a four-day streak of gains, closing down nearly 0.3%, down from the high set on Thursday since last Wednesday, up 6.8% for the week, ending a two-week losing streak, last week’s cumulative decline of 11%.
In terms of gains, among the four major commodities, gold, silver, copper and oil, crude oil and copper were significantly stronger than the two precious metals this week.