US Stock Markets Ended May 6, 2022
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Stocks traded slightly lower, measured by the S&P 500, last week after the early week rally violently reversed on Thursday into Friday. The index posted a -0.18% loss and the tech-heavy NASDAQ lost -1.5%. On Wednesday, the Federal Reserve raised the Fed funds target rate to 1% from 0.5%. The half-point move comes after consecutive quarter-point increases dating back to the end of last year. Investors grappled with the fear that an increase in interest rates by the Federal Reserve could push the economy into a recession. The jobs report on Friday also concerned the market with a drop in the labor participation rate. A lower labor participation rate could lead to wage increases and flow through to broader inflation. More visibility on the aggressiveness of the Fed's next move could come next week as some Fed officials are set to make statements on Friday. Oil closed up over $5 for the week at just under $110 a barrel. Energy companies were the big winners in the S&P 500 as the group moved over 10% higher last week. Devon Energy, Occidental Petroleum, Pioneer Natural Resources, Valero, and NRG Energy were the leaders in the S&P 500 with double-digit gains. Fourteen of the top 25 best performing names in the index were from the Energy sector. Earnings season is coming to an end with nearly 90% of the members of the S&P 500 reporting quarterly earnings and over 75% of the companies beating analyst estimates. Looking ahead to next week, CPI and PPI numbers are set to release on Wednesday and Thursday along with import and export prices on Friday.
Posted on Monday, May 9, 2022 @ 8:19 AM

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.