S&P 500 ends third straight week of losses, without Satna Claus rebound amid interest rate hike fears
The S&P 500 Index (SP500) on Friday fell to its third consecutive weekly loss, 0.20% off to 3,844.82 points in the last full trading week of the year.
Affection has been dampened by worries about the future of interest rate hikes by the Federal Reserve. Economic data released this week showed that an economy is still going strong and a tight labor market is only now beginning to show signs of cooling off due to aggressive interest rate hikes by the central bank. nurse.
Investors also parsing a surprise hawkish move by the Bank of Japan (BoJ) in the form of a surprise extension of yield curve control. The BoJ is one of the last few global central banks to stick to extremely loose monetary policy.
Hopes for a year-end rally, aka “Santa Claus” rally, have gone up in smoke, as market participants are faced with a grim reality that could be that the Fed will continue to tighten policy after the Fed’s monetary policy continues to tighten. high inflation. Many are preparing for a recession.
Earnings news is also in the spotlight this week, with shoe giant Nike (NKE) and chip maker Micron Technology (MU) the most famous companies reported the results. Investors cheer Nike number. On the other hand, Micron’s forecast and plan for job cuts disappointed.
Since Monday is the Christmas holiday, many traders have gone on holiday for the long weekend.
Economically, the last resort of GDP in the third quarter growth was revised higher to 3.2% vs. 2.9% expected. In addition, the number of Americans applying Initial unemployment claim to lower than expected. Both sets of data signal a strong economy and resilient labor market.
On the other hand, November personal consumption turned colder than expected, while core PCE – the Fed’s preferred measure of inflation – rose in line with expectations.
Readings of the Conference Board on America consumer confidence and the University of Michigan measure of the United States consumer psychology both improved.
SPDR S&P 500 Trust ETF (NYSEARCA:spy) on Friday Fall 0.09% week with the benchmark index. ETFs are -19.38% YTD.
Of the 11 S&P 500 (SP500), six sectors ended the week in the green, led by Energy. Among the five losers, Consumer Discretionary retreated the most.
See the breakdown below for the weekly performance of the sectors and their accompanying SPDR Select Sector ETF from December 16 to close to December 23:
#1: Energy +4.38%and SPDR sector select energy ETF (XLE) +3.20%.
#2: Utilities +1.42%and the SPDR Utilities Sector Selection ETF (XLU) +0.61%.
#3: Finance +1.40%and the financial options industry SPDR ETF (XLF) +0.74%.
#4: Consumer staples +1.00%and the Consumer Staples Select Sector SPDR ETF (XLP) +0.43%.
#5: Take care of your health +0.81%and the Healthcare Sector SPDR ETF (XLV) +0.42%.
#6: Industry +0.76%and the Industrial Options SPDR ETF (XLI) +0.30%.
#7: Real Estate -0.01%and the SPDR Sector Select Real Estate ETF (XRE) -1.12%.
#8: Materials -0.10%and SPDR Sector Selective Materials ETF (XLB) -0.71%.
#9: Communication Service -0.40%and the SPDR Sector Select Communications Services Fund (XLC) -0.52%.
#10: Information Technology -2.04%and SPDR Sector Selective Technology ETF (XLK) -2.26%.
#11: Consumer discretion -3.10%and the Consumer Discretionary Sector SPDR ETF (XLY) -3.35%.
Here’s a chart of the year-to-date performance of 11 sectors and how they stack up against the S&P 500. For investors looking to the future of what’s happening, take a look. Search Alpha Catalyst Watch for a breakdown of next week’s actionable highlights.