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U.S. stocks gave up early gains in a volatile trading session to end lower on Thursday, as investors feared that the Fed’s aggressive stance to hike rates in order to fight surging inflation could push the economy into recession. This saw the S&P 500 inching closer to a bear market. All the three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slid 0.8% or 236.94 points to finish at 31,253.13 points. The blue-chip index at one point rose more than 300 points only to give up all its gains and finish in the red.
The S&P 500 fell 0.6% or 22.89 points to close at 3,900.79 points, after swinging between small gains and losses almost throughout the day. Consumer staples, industrials and tech stocks were the biggest losers.
The Consumer Staples Select Sector SPDR (XLP) declined 1.8%, while the Industrials Select Sector SPDR (XLI) fell 0.9%. The Technology Select Sector SPDR (XLK) declined 1.1%. Eight of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq slipped 0.3% or 29.66 points to end at 11,388.50 points.
The fear-gauge CBOE Volatility Index (VIX) was down 5.20% to 29.35. Advancers outnumbered decliners on the NYSE by a 1.15-to-1 ratio. On Nasdaq, a 1.31-to-1 ratio favored advancing issues. A total of 12.7 billion shares were traded on Thursday, lower than the last 20-session average of 13.4 billion.
Concerns Over Economic Growth Worry Investors
The S&P 500 inched closer to a bear market, while the Dow and the Nasdaq gave up all their gains on Thursday in a volatile trading session. Stocks have been suffering for a while now, with all the major indexes closing in the red for the past few weeks.
This week too seems to be no different. On Thursday, all the major indexes extended their weekly losses. The S&P 500 and Nasdaq have now lost over 3% this week, while the Dow is down 2.9%. Investors continued to dump equities on Thursday on fears that the Fed’s move toward steep rate hikes to combat surging inflation could end up pushing the economy into recession.
High-growth stocks were once again the biggest casualties Shares of Cisco Systems, Inc. (CSCO - Free Report) plummeted 13.7% after the company missed revenue estimates in the last reported quarter. Cisco Systems reported third-quarter fiscal 2022 revenues of $12.84 billion, missing the Zacks Consensus Estimate of $13.33 billion. Cisco has a Zacks Rank #3 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Shares of Apple Inc. (AAPL - Free Report) also declined 2.5%, while shares of Broadcom Inc. (AVGO - Free Report) fell 4.7%.
Rising rates have been worrying investors for quite some time now, which has been taking a toll on stocks. Besides, the ongoing Russia-Ukraine war along with a slowdown in China’s economy has further added to their worries. Moreover, several major retailers reporting quarterly results have cited rising fuel costs and a supply chain crisis as reasons behind shrinking profits. These have been further weighing on stocks.
Economic Data
The Labor Department said on Thursday that initial jobless claims rose to 218,000, increasing 21,000 for the week ending May 14. This is the highest level since January. The four-week moving average also increased to 199,500, an increase of 8,250 from the previous week’s revised average of 191,250.
Continuing claims came in at 1,317,000, decreasing 25,000 from the previous week’s revised level, the lowest level since December 1969. The previous week's numbers were revised down by 1,000 from 1,343,000 to 1,342,000. The 4-week moving average came in at 1,362,250, a decrease of 22,500 from the previous week's revised average.
In other economic data, the National Association of Realtors said existing-home sales declined 2.4% in April to a seasonally adjusted annual rate of 5.61 million units against expectations of 5.64 million units. On a year-over-year basis, home sales declined 5.9%.
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Stock Market News for May 20, 2022
U.S. stocks gave up early gains in a volatile trading session to end lower on Thursday, as investors feared that the Fed’s aggressive stance to hike rates in order to fight surging inflation could push the economy into recession. This saw the S&P 500 inching closer to a bear market. All the three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slid 0.8% or 236.94 points to finish at 31,253.13 points. The blue-chip index at one point rose more than 300 points only to give up all its gains and finish in the red.
The S&P 500 fell 0.6% or 22.89 points to close at 3,900.79 points, after swinging between small gains and losses almost throughout the day. Consumer staples, industrials and tech stocks were the biggest losers.
The Consumer Staples Select Sector SPDR (XLP) declined 1.8%, while the Industrials Select Sector SPDR (XLI) fell 0.9%. The Technology Select Sector SPDR (XLK) declined 1.1%. Eight of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq slipped 0.3% or 29.66 points to end at 11,388.50 points.
The fear-gauge CBOE Volatility Index (VIX) was down 5.20% to 29.35. Advancers outnumbered decliners on the NYSE by a 1.15-to-1 ratio. On Nasdaq, a 1.31-to-1 ratio favored advancing issues. A total of 12.7 billion shares were traded on Thursday, lower than the last 20-session average of 13.4 billion.
Concerns Over Economic Growth Worry Investors
The S&P 500 inched closer to a bear market, while the Dow and the Nasdaq gave up all their gains on Thursday in a volatile trading session. Stocks have been suffering for a while now, with all the major indexes closing in the red for the past few weeks.
This week too seems to be no different. On Thursday, all the major indexes extended their weekly losses. The S&P 500 and Nasdaq have now lost over 3% this week, while the Dow is down 2.9%. Investors continued to dump equities on Thursday on fears that the Fed’s move toward steep rate hikes to combat surging inflation could end up pushing the economy into recession.
High-growth stocks were once again the biggest casualties Shares of Cisco Systems, Inc. (CSCO - Free Report) plummeted 13.7% after the company missed revenue estimates in the last reported quarter. Cisco Systems reported third-quarter fiscal 2022 revenues of $12.84 billion, missing the Zacks Consensus Estimate of $13.33 billion. Cisco has a Zacks Rank #3 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Shares of Apple Inc. (AAPL - Free Report) also declined 2.5%, while shares of Broadcom Inc. (AVGO - Free Report) fell 4.7%.
Rising rates have been worrying investors for quite some time now, which has been taking a toll on stocks. Besides, the ongoing Russia-Ukraine war along with a slowdown in China’s economy has further added to their worries. Moreover, several major retailers reporting quarterly results have cited rising fuel costs and a supply chain crisis as reasons behind shrinking profits. These have been further weighing on stocks.
Economic Data
The Labor Department said on Thursday that initial jobless claims rose to 218,000, increasing 21,000 for the week ending May 14. This is the highest level since January. The four-week moving average also increased to 199,500, an increase of 8,250 from the previous week’s revised average of 191,250.
Continuing claims came in at 1,317,000, decreasing 25,000 from the previous week’s revised level, the lowest level since December 1969. The previous week's numbers were revised down by 1,000 from 1,343,000 to 1,342,000. The 4-week moving average came in at 1,362,250, a decrease of 22,500 from the previous week's revised average.
In other economic data, the National Association of Realtors said existing-home sales declined 2.4% in April to a seasonally adjusted annual rate of 5.61 million units against expectations of 5.64 million units. On a year-over-year basis, home sales declined 5.9%.