Recent Developments & Impacts on Investors: Market Trends Take a Breather
Updated 21.6.2023 16:33
The Dow Jones Industrial Average fell by 200 points or 0.58%. The S&P 500 slid 0.42%, while the Nasdaq Composite declined 0.25%. Decliners outpaced advancers on the New York Stock Exchange 2 to 1 on Tuesday with the dip continuing into Wednesday.
Certain sectors, such as energy, experienced significant losses, with a decline of more than 1%. Prominent companies like Intel, Nike, and Boeing also contributed to the Dow’s drop, each falling by more than 3%. On the other hand, homebuilders and certain tech companies managed to outperform. PulteGroup, D.R. Horton, and Lennar each rose by more than 1%, while Nvidia also bucked the trend with a rise of over 1%.
Despite the downturn, the stock market has been up, with the S&P 500 posting its best weekly performance since March and the Nasdaq Composite marking its eighth consecutive positive week. This positive trend is despite the Federal Reserve’s decision to skip a June rate hike, breaking its streak of ten consecutive interest rate increases.
Also Read: Ride the AI Boom With These 5 Tech Stocks
Investor bullishness has also risen to 45.2% from 27.4% several weeks ago, the highest level since November 2021. Investors have also absorbed positive housing starts data for May, which surpassed estimates.
Looking ahead, investors were keenly awaiting a Q4 report from FedEx, and companies like PayPal are on the rise after securing a loan accord with KKR & Co1. Tuesday FedEX reported:
- New Fiscal 2024 Outlook, Including $1.8B Of DRIVE Cost Savings
- Sees FY24 EPS $16.50-$18.50 Vs $18.36 Est.
- Expects To Repurchase $2.0B Of FedEx Common Stock
PayPal Expects $5 Billion in buybacks following the deal. Bank of America suggests that investors seeking exposure to banking stocks could find “attractive risk/reward” in Wells Fargo, Citigroup, Goldman Sachs, and East West Bancorp.
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