Daily market review
Today, the market began positively, recovering from previous declines, but momentum slowed after the S&P 500 reached a high of 4,000 before selling interest caused the market to turn negative in the late afternoon. However, the main indices closed in the green thanks to notable strength in some heavily-weighted components. Investors were still digesting recent rate hikes and central bank announcements. Mega cap stocks initially showed strong buying interest, but by the close, most maintained a leadership position while the broader market deteriorated. Notably, Tesla and Amazon.com fell into negative territory at the same time as the main indices. Bank stocks also fell under pressure. Only the information technology and communication services sectors were able to close with gains, while energy, utilities, and financials fell to the bottom. Economic data showed little change in the health of the labor market, and new home sales were up for the fourth time in five months. On Friday, economic data to be released includes durable orders and IHS Markit PMI.
In terms of sectors, Communication Services and Information Technology performed strongly, while Energy, Utilities, Financials, Real Estate, and Consumer Staples were weak.
The Dow increased by 0.23% to reach 32,105.25 and the S&P 500 gained by 0.30% to reach 3,948.72. The NASDAQ also saw gains, rising by 1.01% to reach 11,787.40. However, the VIX, which measures market volatility, increased by 1.57% to reach 22.61. In Canada, the S&P/TSX Composite decreased by 0.37% to reach 19,459.92, while the S&P/TSX 60 decreased by 0.42% to reach 1,168.11. In Brazil, the BOVESPA fell by 2.29% to reach 97,926.34, while in Chile, the S&P IPSA saw a small increase of 0.08% to reach 5,275.37. Finally, the S&P/BMV IPC in Mexico rose by 0.53% to reach 52,827.93.
The STOXX Europe 50 closed at 3,830.58 in Europe, showing a decrease of 4.08, which is a 0.11% decline. The STOXX Europe 600 also declined in Europe, closing at 446.22, a decrease of 0.94, which is a 0.21% drop. In the United Kingdom, the FTSE 100 ended the day at 7,499.60, down by 67.24, a 0.89% decrease. Meanwhile, in Italy, the FTSE MIB closed at 26,482.21, a drop of 41.12, or 0.16%. Finally, in France, the CAC 40 ended at 7,139.25, a gain of 8.13, or 0.11%.
The Nikkei 225 in Japan fell by 47.00 points or 0.17%, while the Hang Seng in Hong Kong gained 458.21 points or 2.34%. In China, the Shanghai Composite rose by 20.90 points or 0.64%, and in Australia, the S&P/ASX 200 fell by 47.00 points or 0.67%. The KOSPI in South Korea gained 7.52 points or 0.31%, and the Taiwan SE in Taiwan rose by 103.49 points or 0.66%.
The yield rates and yield changes for various US Treasury bonds are listed below. The 3 Month Treasury bond has a yield rate of 4.535% and a decrease in yield of 0.060. Similarly, the 2 Year Treasury bond has a yield rate of 3.841% and a decrease in yield of 0.131, while the 5 Year Treasury bond has a yield rate of 3.446% and a decrease in yield of 0.124. The 10 Year Treasury bond has a yield rate of 3.420% and a decrease in yield of 0.074, and finally, the 30 Year Treasury bond has a yield rate of 3.696% and a decrease in yield of 0.003.
WTI Crude Oil decreased by 2.02% to 69.47, while Brent Crude Oil decreased by 1.81% to 75.00. Natural Gas decreased by 1.30% to 2.28. Gold increased by 2.39% to 1,996.10, and Corn decreased by 0.43% to 630.75.