- The S&P 500 closed the week at 4,320.06 points, with a drop of 0.23% and a weekly drop of 3.02%, reaching June levels. The Nasdaq and Dow Jones also suffered losses.
- The Federal Reserve’s decision to maintain rates but revise upward the federal funds rate forecasts for 2023 and 2024 sparked a strong reaction in financial markets.
- In terms of sectors, Technology and Energy rose the most, while Consumer Discretionary, Financial and Real Estate lagged the most.
Wall Street ended the week down, with losses on the S&P 500, the Nasdaq and the Dow Jones. Additionally, US stocks plummeted, led by the S&P 500which fell to levels last seen in June.
S&P 500 down for the week, Nasdaq and Dow follow as markets react to Federal Reserve’s upward revision of federal funds rate forecasts
The S&P 500 ended Friday’s session at 4,320.06 points, with a drop of 0.23%, but with a weekly drop of -3.02%. The tech-heavy Nasdaq fell 0.09% and plummeted 3.21% for the week, while the Dow Jones Industrial Average sank 0.31% to 33,963.84 points and fell -1.89% for the week.
By sectors, the most bullish were Technology and Energy, which gained 0.26% and 0.15% respectively. The furthest behind were Consumer Discretionary, Financial and Real Estate, which dropped 0.87%, 0.74% and 0.72%, respectively.
During the week, the Federal Reserve held its sixth monetary policy meeting, in which the US central bank decided to maintain rates but revised upwards its forecasts for the federal funds rate (FFR). By 2023, those responsible expect the FFR to be 5.60%; for 2024, they increased their estimates from 4.6% to 5.1%.
The data sparked an aggressive reaction in financial markets, with US equities plunging sharply after hitting new weekly highs. US Treasury yields hit 16-year highs, led by 2-year, 5-year and 10-year bonds. However, as traders took profits ahead of the weekend, US bond yields retreated, although they failed to weaken the dollar.
In terms of data, S&P Global announced the latest PMI readings in the United States. The manufacturing PMI improved to 48.9, but remained in recessionary territory. In contrast, the services PMI and the composite PMI showed signs of losing steam, although they expanded but continued to point towards the 50 expansion/contraction threshold.
US Treasury yields ended the session with the benchmark 10-year note rate at 4.36%, down 1.33%. The Dollar, as shown by the Dollar Index, finished positive, rising 0.19% to 105.58.
In the raw materials sector, WTI rose 0.85% on a daily basis, driven by concerns about supply shortages resulting from the Russian ban on fuel exports.
S&P 500 Price Action – Daily Chart
SP500 technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
