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US Stocks Little Changed, European Stocks Decline.

London, Friday, 20 May 2022

US Markets Summary

On Friday, US markets concluded a turbulent session barely changed, but they still had hefty weekly losses.

Concerns about tighter monetary policy, the economy's resiliency, and corporate earnings in the face of inflation resurfaced, sending the S&P 500 on its longest weekly losing run since the dot-com bubble burst.

The blue-chip index rose barely 0.01 percent to 3,901.36 at the end of a turbulent session.

The index is now down 18.7% from its record closing high of 4,796.56 set on Jan. 3, putting it within striking distance of a bear market, which is defined as an index closing at least 20% below its previous all-time closing high.

On an intraday basis, the S&P 500 was down as much as 20.6 percent from its record closing high on January 3. The S&P 500 also lost for the eighth week in a row, its longest losing trend since 2001.

The other main indices finished Friday barely altered, but lower for the week.

The Dow Jones Industrial Average increased only 0.03 percent, or 8.77 points, to 31,261.90, marking the ninth consecutive weekly loss.

The Nasdaq Composite Index dropped 0.3 percent to 11,354.62. Treasury yields fell, with the benchmark 10-year note yielding less than 2.8 percent, while crude oil prices rose to more than $112 per barrel in the United States.

European Markets Summary

On Friday, European bourses gained some ground, with the regional STOXX 600 and DAX 30 indexes each gaining roughly 1%, as chances of a recovery in major trading partner China were boosted by fresh central bank stimulus.

Both benchmarks, however, fell for the week as investors remained concerned about the global growth prospects and the possibility of recession posed by rising inflation and borrowing prices.

On the data front, producer inflation in Germany hit a new high for the fifth month in a row, while consumer confidence in the UK sank to its lowest level in at least 48 years, despite unexpectedly higher retail sales.

(Written and edited by: The Decision Maker)


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