The S&P 500 hit a bear-market territory on Friday, but rebounded to close mixed.
US stocks rose early Friday after China's central bank cut a key rate, but the gains were short-lived as recession fears weighed. The S&P 500 eventually joined the Nasdaq in a bear market as each index this year has fallen more than 20% from recent highs.
The S&P 500 has lost at least seven weeks in a row for the first time since 2001. The longest run of losses since 1923 was the eight week run of declines for the Dow Jones Industrial Average. The disappointing financial updates from retailers including Walmart and Target raised alarm bells about consumer spending in an economy that depends heavily on shoppers.
The US indexes were at 4:00 p.m. on Friday.
David Donabedian, chief investment officer of CIBC Private Wealth US, said in a Friday note that the "buy the dips" strategy is somewhat dangerous.
Real-time economic data for May shows that the economy is slowing down. He said that the equity market is fragile because of the rising risk of recession. Hot inflation that hit 8.3% in April has the Federal Reserve raising interest rates.
The PCE will be the focus of the Fed next week. Donabedian said that it will be problematic for the market if it is more.
Stanley Druckenmiller, a billionaire investor, revealed a new bet against the S&P 500 and pushed into energy stocks last quarter.
More than $250 million in non-US government debt has been added to Stablecoin tether's reserves. During a selloff in tech stocks, the top holding in Ark Invest's flagship fund was overtaken by Roku.
The oil prices went up. The price of West Texas Intermediate crude was $112.70 per barrel. The international benchmark for crude oil was up 0.1% to $112.63.
The price of gold fell to $1,841.10 per ounce. The yield on the 10-year Treasury fell.
The price of the digital currency fell 4.1% to $28,965.14.
All Rights Reserved © 2024
