.png)
S&P 500 posts worst week since January
Despite some early-week strength, stocks finished the week with steep losses as the Dow Jones lost 800 points. The equities market started to sell-off on Thursday and the decline accelerated on Friday following the release of hotter-than-expected consumer price index (CPI) data for May. The VIX index turned sharply higher at the end of the week. Oil prices climbed for most of the week before falling on Friday, finishing the week modestly higher. Tech stocks underperformed the broad market as higher interest rates weighed on “long-duration” stocks. Value stocks held up better than growth stocks. The May US CPI release on Friday showed that headline inflation was 8.6% from a year earlier, topping consensus estimates. May’s headline CPI was also higher than in April (8.3%), disappointing investors who had been looking for “peak inflation”. U.S. Treasury yields increased, with the short- and intermediate-term maturities climbing sharply after the CPI release.
European shares fell sharply after the ECB suggested that it may increase interest rates at a faster-than-expected pace after July. The STOXX Europe 600 Index ended the week 3.95% lower. In the UK, PM Johnson survived a confidence vote.
Stocks in China rallied amid hopes for looser monetary policy and signs that Beijing was easing its years-long crackdown on the technology sector.
Disclaimer
This marketing document has been issued by Bank Syz Ltd. It is not intended for distribution to, publication, provision or use by individuals or legal entities that are citizens of or reside in a state, country or jurisdiction in which applicable laws and regulations prohibit its distribution, publication, provision or use. It is not directed to any person or entity to whom it would be illegal to send such marketing material. This document is intended for informational purposes only and should not be construed as an offer, solicitation or recommendation for the subscription, purchase, sale or safekeeping of any security or financial instrument or for the engagement in any other transaction, as the provision of any investment advice or service, or as a contractual document. Nothing in this document constitutes an investment, legal, tax or accounting advice or a representation that any investment or strategy is suitable or appropriate for an investor's particular and individual circumstances, nor does it constitute a personalized investment advice for any investor. This document reflects the information, opinions and comments of Bank Syz Ltd. as of the date of its publication, which are subject to change without notice. The opinions and comments of the authors in this document reflect their current views and may not coincide with those of other Syz Group entities or third parties, which may have reached different conclusions. The market valuations, terms and calculations contained herein are estimates only. The information provided comes from sources deemed reliable, but Bank Syz Ltd. does not guarantee its completeness, accuracy, reliability and actuality. Past performance gives no indication of nor guarantees current or future results. Bank Syz Ltd. accepts no liability for any loss arising from the use of this document.
Related Articles
The S&P 500 closed at a fresh all-time high on Friday, rising for a 5th consecutive week, its longest weekly winning streak since 2024. This brings the index up +15% since the March 30 low, also marking April as the best month for stocks since November 2022. Stocks largely shrugged off the stream of sometimes conflicting headlines about the war in the Middle East and a surprisingly hawkish Federal Reserve policy meeting to post solid gains in most major indexes. Large-cap stocks outpaced small-caps, and value outperformed growth. Five of the “Mag 7” companies reported earnings, with financial results generally meeting or exceeding expectations for these bellwether firms. Meanwhile, major central banks keep rates on hold amid war uncertainty.