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Stock Market News for Jun 30, 2022

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U.S. stocks ended mixed on Wednesday, with the S&P 500 and Nasdaq ending slightly lower, as major indexes made a failed attempt to bounce back. Investors once again worried about the slowing economy and Fed’s aggressive rate-hike stance, which have consumed most of the first half of 2022.

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) gained 0.1% or 82 points to finish at 31,029.31 points.

The S&P 500 shed 0.1% or 2.27 points to end at 3,818.83 points. Energy stocks were the worst performers. The Energy Select Sector SPDR (XLE) shed 3.5%. Healthcare and consumer staples were the gainers on Wednesday.

The Consumer Staples Select Sector SPDR (XLC) gained 0.6%, while the Health Care Select Sector SPDR (XLV) added 0.9%. Six of the 11 sectors of the benchmark index ended in negative territory.

The tech-heavy Nasdaq slipped less than 0.1% or 3.65 points to close at 11,177.89 points. All the three major indexes recorded their worst single-day percentage declines since Jun 16.

The fear-gauge CBOE Volatility Index (VIX) was down 0.71% to 28.16. Decliners outnumbered advancers on the NYSE by a 1.96-to-1 ratio. On Nasdaq, a 1.79-to-1 ratio favored declining issues. A total of 11.55 billion shares were traded on Wednesday, lower than the last 20-session average of 12.79 billion.

Investors’ Confidence Continue to Get Dented

Wall Street erased all the gains made in the earlier half of Wednesday’s trading session as investors continued to weigh if stocks have hit rock bottom or if the worst is still to come, as the second comes to an end on Thursday. Concerns over a slowing economy owing to the aggressive rate-hike policy adopted by the Fed to check surging inflation have consumed most of the first half of 2022.

This has raised worries of a recession. All three major indexes are almost on the verge of recording their second-straight quarterly declines. The Nasdaq is almost certain to post its worst first-half ever, while the Dow is Kiley to record its biggest first percentage drop since the 2008 economic crisis.

These factors have been playing in the mind of investors who are yet to get a clear idea about the Fed’s next rate-hike move. Investors are also focused on the upcoming earnings season and many fears that a number of companies will come up with disappointing profits and guidance.

The worries continued through Wednesday, erasing most of the gains made earlier. Chipmakers’ stocks took a massive hit. Shares of Micron Technology, Inc. (MU - Free Report) and Advanced Micro Devices, Inc. (AMD - Free Report) declined 3.2% and 3.5% respectively.

Energy stocks also suffered on Wednesday. Chevron Corporation’s (CVX - Free Report) shares declined 2%, while Exxon Mobil Corporation (XOM - Free Report) fell 3.7%. Chevron and Exxon Mobile each carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

However, tech stocks somewhat helped pair the losses. Shares of Amazon.com, Inc. (AMZN - Free Report) gained 1.4%, while Meta Platforms, Inc. (META - Free Report) added 2%.

Economic Data

Economic data released on Wednesday once again disappointed investors. The U.S. GDP in the first quarter was revised down to show a decline of 1.6% from the earlier decline of 1.5%.