On Friday, U.S. stocks ended sharply lower, weighed down by financial stocks which were market leaders in the prior session. The Dow Jones Industrial Average plunged 730 points (-2.84%) to 25015, the S&P 500 sank 74 points (-2.42%) to 3009, and the Nasdaq 100 was down 252 points (-2.50%) to 9849.
Dow Jones Industrial Average: Daily Chart
Source: GAIN Capital, TradingView
Banks (-6.13%) stocks were dragged down by the Federal Reserve's announced measures to bar the nation's biggest banks from buying back their own stocks or increasing dividend payments in the third quarter. Huntington Bancshares (HBAN -11.02%) and Goldman Sachs (GS -8.65%) shares lost the most.
Media (-4.93%) and Consumer Durables & Apparel (-4.74%) sectors were also under pressure. Social networking platforms Twitter (TWTR -7.40%) and Facebook (FB -8.32%) lost big.
Meanwhile, market sentiment was also dampened by a rebound in coronavirus infections across the U.S.
On the technical side, about 38.7% (36.7% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 20.0% (13.5% in the prior session) were trading above their 20-day moving average.
U.S. official data showed that Personal Income fell 4.2% on month in May (-6.0% expected), Personal Spending jumped 8.2% (+9.3% expected), the biggest increase on record. The University of Michigan's Consumer Sentiment Index slipped to 78.1 in June (79.2 expected).
European stocks were broadly lower. The Stoxx Europe 600 Index fell 0.4%. Germany's DAX dropped 0.7%, France's CAC slipped 0.2%, while the U.K.'s FTSE 100 was up 0.2%.
U.S. government bond prices remained buoyed, as the benchmark 10-year Treasury yield sank further to 0.636% from 0.670% Thursday.
Spot gold price climbed $7.00 (+0.4%) to $1,771 an ounce.
Oil prices lack upward momentum, as resurging coronavirus cases caused worries about a slowdown in the economy's reopening and demand for energy. WTI crude oil futures (August) decreased 0.6% to $38.49 a barrel.
On the forex front, the ICE U.S. Dollar Index edged up 0.1% on day to 97.50, posting a three-day rally.
EUR/USD was flat at 1.1219. Later today, the eurozone's Economic Confidence Index for June will be released (82.5 expected).
GBP/USD slid 0.7% to 1.2335, the lowest level since May 28.
USD/JPY was little changed at 107.22. This morning, official data showed that Japan's retail sales rose 2.1% on month in May (+3.0% expected)
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.