U.S. Indexes Extend May Losses

Barry Adams
31 May, 2022
New York City

U.S. stocks closed down after lackluster trading and inflation and oil prices weighed on the market sentiment. 

The S&P 500 index declined 0.6% to 4132.12 and the Nasdaq Composite index edged down 0.54% to 12,081.39. 

In May, the S&P 500 index fell 0.5% and the Nasdaq Composite index dropped 3.6% after a month of wild trading.  

Home prices continued to advance in March despite the rising mortgage rates. 

The controversial S&P CoreLogic Case Shiller U.S. National Home Price NSA index showed 3-month average prices to March increased 20.6% after rising at 20% in February. 

The price index in 20 metropolitan cities surged 21.2% from 20.3% in February and in 10-city composite increased 19.5% from 18.7% in the previous month. 

Tampa, Phoenix, and Miami reported the largest annual gains among the 20 cities in March. 

Tampa led the list with 34.8% annual price increase, followed by Phoenix with a 32.4% increase, and Miami with a 32.0% increase. 

Inflation worries resurfaced after crude oil extended gains and reached a new 8-yeare high. 

Energy prices advanced after China eased restrictions in Beijing and Shanghai and activities are expected to pick up across large cities. 

Moreover, European Union leaders except Hungary, agreed to ban most oil products from Russia by the year's end. 

Futures of crude oil jumped as much as 4% in early trading but closed up 34 cents to $115.44 a barrel and natural gas declined 51 cents or 5.1% to $8.22 a unit. 

The yield on 10-year Treasury notes increased a fraction to 2.855%. 

Euro zone consumer price index jumped to more than expected 8.1% and France and Austria also reported record high inflation not seen in the last several decades. 

The latest data from the Eurostat, the statistics office in the currency union, showed consumer prices harmonized in May rose 8.1% after rising at 7.4% in April, seventh monthly record increase in a row. 

May Inflation in France jumped to 5.8% from 5.4% in April and in Germany surged to 8.7% from 7.8% in April. 

Harmonized inflation in Italy rose 7.3% in May from 6.3% in April.

The main driver of inflation in the region is the 39.2% surge in crude oil prices in May after rising 37.5% in April. 

The DAX index declined 1.3% to 14,388.35, the CAC 40 index dropped 1.4% to 6,468.30, and the FTSE 100 index rose 0.1% to 7,607.66. 

Chinese stocks trading in New York jumped after residents are allowed to visit malls, public places, and parks from June 1. 

Workers are also scheduled to return to office after the easing of the Covid restrictions from next month.   

Alibaba Group Holding Ltd jumped 3.4% to $96.62, JD.com jumped 52% to $56.51, Baidu Inc jumped 3.1% to $143.38, and Nio Inc jumped 5% to  $17.41. 

Healthcare stocks led the decliners. UnitedHealth declined 2% to $496.93,  Walgreens Boots Alliance jumped 0.6% to $43.99, Cigna Group declined 0.7% to $270.19, and HCA Healthcare fell 2.01% to $211.06. 

Cracker Barrel declined 3% to $101.99 and extended loss in the year so far to 22.5% ahead of the release of its earnings on June 6.