FINANCIAL STOCK MARKET  WEEK "Stocks closed last week generally higher" Market Week: June 10, 2024 

The Markets (as of market close June 7, 2024)

Despite a dip at the end of the week, stocks closed last week generally higher, with the exception of the economically sensitive small caps of the Russell 2000.  A robust jobs report at the end of last week may have alleviated concerns about an economic slowdown, but it also strengthened the Fed's case to refrain from lowering interest rates until inflation recedes. Nevertheless, both the S&P 500 and the Nasdaq recorded fresh records.  Among the market sectors, information technology, health care, communication services, and consumer staples performed well, while utilities, energy, and materials ended the week in the red.  With the likelihood of a rate cut diminishing, bond prices fell, driving yields higher. The dollar also benefited from the jobs report, climbing higher against a basket of currencies.

Wall Street began the week on a sluggish note, picking up where it left off the previous week.  The Nasdaq flip-flopped for much of the day before closing up 0.6%, indicative of the volatility that ensued for much of the day.  The Global Dow gained 0.4% and the S&P 500 edged up 0.1%.  The Russell 2000 fell 0.5% and the Dow lost 0.3%.  Energy, financials, and industrials were the poorest performing sectors, while information technology and health care scored gains.  The yield on 10-year Treasuries fell 11.0 basis points to 4.40%, a two-week low. Crude oil prices dropped more than 3.0% to $74.04 per barrel, its lowest point in four months after OPEC+ announced a plan to gradually ease some of its production cuts.  The dollar fell 0.5%, while gold prices rose 1.0%.

The three major indexes, the Dow (0.4%), the S&P 500 (0.2%), and the Nasdaq (0.2%) eked out gains last Tuesday, while the Russell 2000 (-1.2%) and the Global Dow (-0.3%) lost value.  Real estate and consumer staples gained the most among the market sectors, while energy and materials fell the furthest.  Ten-year Treasury yields fell to 4.33%, the lowest in nearly three weeks, as investors see recent economic data as leading to the Fed possibly cutting interest rates as early as September.  Crude oil prices continued to decline, falling $0.89 to $73.33 per barrel.  The dollar was unchanged, while gold prices declined 1.0%.

A tech rally last Wednesday helped propel the Nasdaq (2.0%) and the S&P 500 (1.2%) to record highs. Among the remaining benchmark indexes listed here, the Russell 2000 advanced 1.5%, the Dow rose 0.3%, and the Global Dow gained 0.2%. Yields on 10-year Treasuries fell 4.7 basis points to 4.28%.  Crude oil prices advanced for the first time in several sessions, gaining $0.90 to $74.15 per barrel.  The dollar eked out a 0.2% gain, while gold prices advanced 1.2%.

Stocks closed generally lower last Thursday.  The S&P 500 and the Nasdaq dipped less than 0.1%.  The Russell 2000 fell 0.7%. The Global Dow and the Dow gained 0.4% and 0.2%, respectively. Initial jobless claims rose more than expected (see below) as investors awaited Friday's employment report for May.  Ten-year Treasury yields stayed at 4.28%.  Crude oil prices rose for the second straight day, up $1.59 to $75.66 per barrel.  The dollar slipped 0.2%, while gold prices advanced for the third day out of the last four after gaining 0.83%.

A strong jobs report last Friday dampened investors' hopes of an interest rate reduction by the Fed. Stocks closed lower on the day, with the Russell 2000 falling 1.1% to lead the downturn.  The Global Dow lost 0.4%, the Dow and the Nasdaq slid 0.2%, while the S&P 500 dipped 0.1%.  The yield on 10-year Treasuries jumped nearly 15.0 basis points to 4.43%.  Crude oil prices declined for the first time in three days, falling $0.31 to $75.24 per barrel. The dollar rose 0.8%, while gold prices dropped 3.4%.

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Wendy Nelson, CEO of Wind River Wealth Advisors, aims to provide beneficial investment management, retirement planning, financial planning, asset management, and portfolio management to protect your money with knowledgeable strategies and plans by utilizing a personal independent financial advisor.