Check out the key highlights in US markets this week

Stock Market This Week (US)

US markets gave up last week’s gains, finishing lower amid fears of rate hikes following aggressive comments from US Federal Reserve officials. For the week, the S&P ended 1.21% lower, Dow fell 0.16% and Nasdaq fell 2.62%. The growth-oriented technology and communications services sectors underperformed the S&P 500.

US stock market this week: stock movement this week

US stocks closed higher Monday on the back of a four-week winning streak. Investors ignored weak economic data from China and the US. All three major stock indices ended in positive territory.

Wall Street closed mixed on Tuesday while market participants continued to assess the health of the US economy based on mixed economic data. Dow and the S&P 500 ended in positive territory, while the Nasdaq ended in the red.

US stocks closed lower Wednesday while investors weighed the Fed’s July FOMC minutes. In addition, July retail sales data fell short of expectations, raising fears of slowing economic growth.

Wall Street closed slightly higher Thursday after mixed earnings results from retail and economic data released Wednesday.

US stocks fell Friday as Fears of rate hikes dampened investor sentiment after the Fed president announced further rate hikes. About $2 trillion worth of options contracts expired, causing volatility in the markets.

US stock market this week: major events

Quarterly Results: Major US companies with mega retailers reported their quarterly results for June during the week. The price of Walmart’s stock jumped above forecast sales and earnings for the quarter. Nu Holdings reported healthy growth in revenue and customers, while Cisco’s profit exceeded analyst estimates. Target stocks, however, fell on a sharp drop in earnings as buyers pulled back on discretionary purchases.

Fed hawkish comment: The minutes of the Fed’s FOMC meetings pointed to aggressive rate hikes to contain rising inflation. In addition, Fed President James Bullard recently stated that he would likely vote for another 0.75% rate hike at the Fed’s next policy meeting. This dampened investor sentiment that dragged US markets lower this week.

Monthly Retail Sales: Retail sales proved more resilient than expected in July, rising 0.7% excluding the volatile gas and auto segments. Online sales rose sharply, while restaurant sales also ticked higher, indicating a balance between goods and leisure activities. This suggests that household consumption growth may remain a positive force in supporting economic output.

Home sales: Housing market data is a little daunting. Home purchases and permits have fallen, homebuilder sentiment has fallen and mortgage applications have fallen to their lowest level since November 2020. This trend is not surprising, as rising interest rates have a more direct effect on buying activity.

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