U.S. Markets Set To Close Higher 6th Consecutive Week

Barry Adams
16 Jun, 2023
New York City

Stocks opened higher and major averages extended gains of the week where several new milestones were created. 

The S&P 500 index is up for the sixth week in a row and the Nasdaq Composite index advanced for the eighth week in a row. 

Both indexes are up for the sixth session in a row after the consumer price and wholesale price inflation receded in May and the Federal Reserve paused its monetary tightening cycle. 

Stocks are expected to be volatile today as several indexes and options expire for the second quarter. 

Despite the hawkish stance of the Federal Reserve after the latest rate hikes, many investors are estimating that the central bank may be nearing its rate tightening cycle. 

The Fed has suggested in its accompanying statement that rates may go up by another 50 basis points by the year's end. 

The Federal Reserve has increased interest rates ten times in a row since March 2022 before pausing this week, and multiple rate hikes have not cooled the economy into a recession and tempered tight labor market conditions. 

The central bank is estimating the economy to grow at 1.1% in the current year, below its long term average of 1.8%, but higher rates for longer may keep economic growth near 1% than its long term average for years to come. 

 

U.S. Indexes & Yields 

The S&P 500 index increased 0.2% to 4,436.21 and the Nasdaq Composite increased 0.7% to 13,797.93. 

The yield on 2-year Treasury notes increased to 4.73%, 10-year Treasury notes edged up to 3.75% and 30-year Treasury bonds eased to 3.85%. 

Crude oil increased $0.51 to $71.14 a barrel and natural gas prices increased 7 cents to $2.60 a thermal unit. 

 

U.S. Stock Movers

Adobe Inc increased 5.7% to $490.91 after the company reported better-than-expected quarterly results. 

The company's guidance for the current quarter and 2023 exceeded market expectations. 

Luxury stocks advanced on the hopes that China will provide a more targeted stimulus program next week. 

China linked luxury stocks Hermes SCA, LVMH, Ralph Lauren, Oxford Industries and Tesla Inc gained between 0.5% and 3%.  

Exxon Mobil, Chevron, Occidental Petroleum, EQT increased about 1% after natural gas prices extended weekly gains following the supply worries in Europe. 

The Netherlands plans to temporarily shut down a LNG terminal and energy supplies from Norway were curtailed for regular maintenance.