Stocks fall after hitting six-week high, dollar weakens after US data

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  • MSCI World Index posts five-game winning streak
  • US stocks fall as social media stocks weigh
  • Dollar poised for biggest weekly PCT drop in two months

NEW YORK, July 22 (Reuters) – A gauge of global equities fell on Friday to end the trading week on a negative note after five consecutive sessions of gains, while the dollar fell against a basket of major currencies after soft data on business activity in the United States. .

Wall Street posted modest losses in early trading, but S&P 500 declines accelerated as big tech names such as Meta (META.O) and Alphabet (GOOGL.O) lost ground in the wake profits of Snap Inc, which plunged 39.08%. Defensive sectors such as Utilities (.SPLRCU) and Consumer Staples (.SPLRCS) were among the few to advance. Read more

“Every rally we’ve had in this bear market there’s been a number of strong rallies and then they fade and we set new lows and it’s been a pretty consistent pattern here,” said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder. At New York.

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“Everyone is looking for the turn, everyone is trying to guess when we will have a sustained rally, and everyone is hoping for one, but for me there is still a lot of unknown ahead of us.

With 106 of the S&P 500 companies reporting earnings through Friday morning, 75.5% beat analysts’ expectations, below the 81% beat rate over the past four quarters, according to Refinitiv data.

The Dow Jones Industrial Average (.DJI) fell 137.61 points, or 0.43%, to 31,899.29, the S&P 500 (.SPX) fell 37.32 points, or 0.93%, to 3,961.63 and the Nasdaq Composite (.IXIC) fell 225.50 points, or 1.87%, to 11,834.11.

For the week, the Dow Jones advanced 1.96%, the S&P 500 gained 2.56% and the Nasdaq rose 3.33%. The Dow and S&P gains marked their biggest weekly percentage gains in four.

S&P Global said on Friday its preliminary U.S. composite PMI production index fell far more than expected to 47.5 this month from a final reading of 52.3 in June, the first contraction in nearly two years. Read more

Flash PMI

Recent data showed signs of a slowing economy, but the Federal Reserve is still expected to raise US interest rates by 75 basis points at its policy meeting to fight inflation. On Thursday, the European Central Bank (ECB) raised rates by 50 basis points after indicating for weeks that a 25 basis point hike was in sight. Read more

The pan-European STOXX 600 index (.STOXX) closed up 0.31% and the MSCI gauge of stocks across the world (.MIWD00000PUS) lost 0.44% after climbing to 623.79, its all-time high. level since June 10.

The MSCI index climbed 3.1% over the week. The STOXX 600 posted the biggest weekly percentage gain in two months, in part due to easing concerns over a potential energy crisis. Read more

The dollar lost ground on the heels of data on business activity as investors weighed slowing economic activity against lower inflation.

The dollar index fell 0.047%, with the euro down 0.18% at $1.021.

The euro slipped in choppy trade after data showed eurozone business activity also contracted unexpectedly this month as businesses continued to report rising costs as that inflation was biting, hitting consumer demand and weighing on the outlook, a survey showed. Read more

After hitting a 20-year high last week, the dollar was on course for its biggest weekly percentage decline in nearly two months.

The Japanese yen strengthened 0.98% against the greenback to 136.05 to the dollar, while the pound last traded at $1.2002, up 0.08% on the day.

Benchmark 10-year bonds last 15.6 basis points to yield 2.7522%, after hitting a two-month low at 2.732%.

“The market is quickly pricing in the possibility that the Fed may raise rates aggressively for the rest of the year,” said Subadra Rajappa, head of US rates strategy at Societe Generale in New York.

ECB President Christine Lagarde said in an interview with the German agency Funke Mediengruppe published on Friday that the central bank would raise interest rates until inflation returned to its target of 2%, its strongest comments to date on the fight against inflation. Read more

U.S. crude stood 1.71% at $94.70 a barrel and Brent at $103.20, down 0.64% on the day.

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Additional reporting by Rodrigo Campos in New York, Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru; Editing by Nick Zieminski, David Gregorio and Aurora Ellis

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