Wall Street closed a volatile week
Wall Street said goodbye to Friday with hardly any changes. A volatile week was marked by fears of rising prices in the United States and the possibility that the Federal Reserve initiates the withdrawal of stimuli prematurely.
In the last five sessions, the Dow Jones Industrials fell 0.5%, and the selective S&P 500 yielded 0.4%. Both of the markets lengthened the losses of the previous week. At the same time, the Nasdaq Composite Index rebounded a slight 0,3%, breaking a losing streak that lasted a month.
Most European stock markets ended up with gains despite investors’ nervousness. Milan gained 0.84%; Madrid increased by 0.64%, Frankfurt added 0.14%; and Paris extended by 0.02%. Meanwhile, London has lost 0.36%.
The start of the last week was negative, still dominated by inflation data for April that have generated fear of rising prices in the US. Tuesday was the worst session since February due to sales of massive stocks amid significant volatility.
The waters calmed down on Wednesday when the market read the minutes of the last monetary policy meeting of the Federal Reserve. It showed that most of its officials remain convinced that the rebound in prices will be temporary.
Arguments continue to be made about inflation
On the other hand, the economic data was positive in the labor market, which recorded unemployment claims at 444,000, the lowest since the pandemic. Besides, productive activity and services expanded to record figures in May.
Oanda analyst Ed Moya stated that the history of American exceptionalism would continue to fuel the debate about the withdrawal of stimulus. Arguments continue to be made about inflation throughout the corporate United States.
In the debt market, the yield of the 10-year Treasury bond reached a peak above 1.68%, given the possibility that the US central bank initiates the withdrawal of stimuli if the solid economic recovery continues. However, it ended up moderating to 1.62%.
The nearly completed round of quarterly results continued with encouraging numbers from some of the major US retailers on the corporate front. Walmart and Macy’s saw sales increases in line with the DIY and home improvement chain of the Home Depot home.
