Stock Market This Week (US): US markets fell amid 41 Year high Inflation
Stock Market This Week (US)
It was a tough week for investors as the market mostly remained in the red throughout the week. The Friday rally provided some relief to investors. All the major averages closed out the week with losses. The Dow slipped close to 0.2%, while the S&P and Nasdaq fell 0.9% and nearly 1.6%, respectively.
US stock market this week: Stocks movement this week
The US market fell sharply on Monday led by losses in technology companies as braced for the start of the earning season and fresh inflation data expected later in the week. Oil prices fell amid renewed COVID fears in China that stoked worries around supply.
US stocks tumbled on Tuesday as worries over global economic growth dented investor appetite for risk assets. The market struggled for direction throughout the day and fell sharply in the final hour of trading. The 10-year Treasury yield fell about 1 basis point to about 2.98%.
The US market continued to slide on Wednesday as June inflation data hit its highest level since 1981. Investors feared that the Federal Reserve will get more aggressive in its fight to tame rising prices. At one point, the Nasdaq and S&P fell more than 2% and 1.5%, respectively.
The US stocks continued to slide for the fourth consecutive day on Thursday as big bank earnings kicked off with disappointing results. Big tech stocks were mixed on Thursday, with information technology up nearly 1%. Volatile oil prices also dropped, with West Texas Intermediate crude hitting its lowest level since February.
The US stocks broke the four-day losing streak on Wall Street on Friday. The sentiment was buoyed by better-than-expected retail sales data and a surprise earnings beat from Citigroup. Federal Reserve Board of Governors member Christopher Waller said Thursday he would be open to backing an increase of 100 basis points.
US stock market this week: Major events
Results season kicked off: JPMorgan's earnings fell short of analyst expectations as the bank built reserves for bad loans by $428 million. Citi Bank reported its Q2 numbers - it reported an 11% jump in revenue for the period to $19.64 billion.
Twitter shares in the news: Twitter share price fell on Monday by more than 11% Elon Musk backed out of his $44 billion bid for the social media platform on Friday. However, the price recovered during the week. Musk cited "material" breaches of multiple provisions in the agreement in his decision to terminate the deal, including Twitter's recent decision to axe some of its recruiting team.
Inflation numbers: The consumer price index increased 9.1% from a year ago in June, above the 8.8% Dow Jones estimate. Excluding food and energy, core CPI rose 5.9%, compared with the 5.7% estimate. On a monthly basis, headline CPI rose 1.3% and core CPI was up 0.7%, compared to respective estimates of 1.1% and 0.5%.
Retail sales data: Retail sales are mostly made up of goods, and are not adjusted for inflation. US retail sales rebounded strongly in June as Americans spent more on gasoline and other goods amid soaring inflation. Retail sales rose 1.0% last month. Retail sales increased 8.4% on a year-on-year basis and are 18% above their pre-pandemic trend.
How has the US market performed this week?
Out of the five trading days, the US stock flat ended lower on 4 days. All the major averages closed out the week with losses. The Dow slipped close to 0.2%, while the S&P and Nasdaq fell 0.9% and nearly 1.6%, respectively.
What is the US CPI number for June?
The US consumer price index increased to 9.1% YoY against an estimate of 8.8%. Sequentially, headline CPI rose 1.3% and core CPI was up 0.7%.
What is the current 10-year US Treasury bond yield?
The 10-year Treasury bond yield closed at 2.93 for the week ending 15 July, down 0.2% in the week. It is up 1.4% YTD.
What is Citigroup's profit for the second quarter?
Citigroup’s profit for Q2 fell to $4.55 billion, or $2.19 per share. However, they were higher than analysts' expectations of $1.68 per share.