Investors’ reaction to the Fed’s meeting minutes from June resulted in a choppy indecisive day for the market. The US Dollar continued to climb against the Euro.
The Euro fell sharply and Oil plunged to nearly $100 a barrel on fears of recession. Growth stocks rose as investors price in a possible reaction from the Fed to soften the landing for the economy.
The first day of the second half of the year saw markets rise after dipping in the morning. However defensive stocks still lead with the Utilities sector on top. Treasury yields fell throughout the week, falling again on Friday.
Markets closed the worst first semester in over 50 years with another decline, falling on concerns over economic growth and corporate debt concerns.
GDP for Q1 was revised lower while investors are trying to calculate what possible moves the Fed will make to combat a recession.
Consumer Confidence data shocked investors as it hit a 16-month low and raised worries over slower economic growth.
After one of the best weekly gains of the year, the index kicked this week off with a pullback. Growth stocks led stocks lower, but small caps held onto gains for the day.
Big tech and growth stocks recovered some of the heavy losses from Thursday’s selling. The bounce comes at the end of one of the worst weeks in the market since the start of the pandemic.
The Fed increased interest rates by 75 basis points as many expected after last week’s inflation data. Initially, the market dipped, but then a rally came after Jerome Powel’s comments following the rate hike.
A wait-and-see day ended with a further dip across the market, but a bounce in technology stocks helped the Nasdaq end the day with a gain. Investors’ full attention is on the Fed’s rate-hike decision on Wednesday.