Wall Street's main indexes fell on Friday, with growth and value stocks falling as investors turned risk-averse towards the end of the week, while gains in defensive parts of the market kept declines at bay. Markets have largely cheered a steady recovery in the labor market this year, but concerns about higher inflation due to a faster-than-expected rebound have hurt sentiment, with investors oscillating between "value" and tech-heavy "growth" names in the past few sessions. Economy-sensitive S&P 500 energy, financials and industrials led declines among the 11 major sector indexes by afternoon trading. The energy sector is down over 6% so far for the week. Technology stocks also fell on Friday, while defensive utilities, consumer staples and real estate gained. Real estate also hit a record. Investors are more concerned right now about missing the upside of this market than they are about a sell-off. In the near term, all they're really doing is shifting between stocks and not taking money out of the overall market.
Dow Jones Industrial Average
The Dow Jones Industrial Average lost 0.86%. The biggest gainers of the session on the Dow Jones Industrial Average were Procter & Gamble Company, which rose 0.98% or 1.37 points to trade at 140.53 at the close. The Travelers Companies Inc. added 0.52% or 0.81 points to end at 156.39 and Amgen Inc. was up 0.51% or 1.27 points to 247.90 in late trade. The biggest losers included Dow Inc., which lost 3.09% or 1.91 points to trade at 60.00 in late trade. Chevron Corp declined 2.65% or 2.68 points to end at 98.62 and Walt Disney Company shed 2.64% or 4.87 points to 179.28.
NASDAQ 100
The NASDAQ index declined 0.80%. The top performers on the NASDAQ Composite were Red Cat Holdings Inc. which rose 41.35% to 7.110, China SXT Pharmaceuticals Inc. which was up 39.33% to settle at 2.0900 and GX Acquisition Corp which gained 26.93% to close at 10.18. The worst performers were Bit Brother Ltd which was down 48.00% to 1.0400 in late trade, FibroGen Inc. which lost 42.27% to settle at 14.34 and American Outdoor Brands Inc. which was down 21.93% to 28.05 at the close.
Oil
Oil prices recouped some losses today but were still down after OPEC+ overcame internal divisions and agreed to boost output, which sparked concerns about a crude surplus as COVID-19 infections continue to rise in many countries. U.S oil was down 66 cents, or 0.9%, at $71.15 a barrel, having slipped to $70.64 earlier. OPEC+ ministers agreed on Sunday to increase oil supply from August to cool prices that earlier this month climbed to the highest in around 2-1/2 years as the global economy recovers from the COVID-19 pandemic. The group, which includes members of the OPEC and allies such as Russia, agreed on new production shares from May 2022. Oil prices may continue to gyrate in the coming weeks. The group last year cut output by a record 10 million barrels per day (BPD) amid evaporation in demand the pandemic developed, prompting a collapse in prices with U.S oil at one point falling into negative territory. It has gradually brought back some supply, leaving it with a reduction of around 5.8 million BPD.
Precious and Base Metals
Gold prices edged higher today, lifted by a retreat in U.S. Treasury yields and concerns that a surge in coronavirus cases could dampen global economic recovery, though an uptick in the dollar limited the safe-haven metal’s appeal. Spot gold was up 0.1% at $1,812.06 per ounce, after falling 1% in the previous session. U.S gold futures were steady at $1,815.10. Covid-driven risk aversion is driving Asian markets today after a weak finish on Wall Street on Friday. Gold is used as a safe investment during times of political and financial uncertainty. Some short-covering is providing modest support to gold, but it not displaying any clear momentum in either direction. Sentiment in wider financial markets remained weak as investor risk appetite was soured by growing inflationary pressures and a relentless surge in coronavirus cases. Many countries, particularly in Asia, are struggling to curb the highly contagious Delta variant of the coronavirus and have been forced into taking lockdown measures. Benchmark 10-year Treasury yields held near more than one-week low, reducing the opportunity cost of holding non-interest-bearing gold. However, safe-haven gains for the U.S dollar limited gold’s appeal, as the dollar index strengthened 0.1% and edged towards a three-month high against its rivals. Negative real yields appear to be driving gold prices in the face of a stronger USD. We expect the U.S. dollar to weaken as other central banks hike rates. On the technical front, spot gold may break a support at $1,813 per ounce and fall towards $1,789, following its failure to break a resistance at $1,833. Elsewhere, silver fell 0.7% to $25.49 per ounce, palladium rose 0.4% to $2,641.68, and platinum eased 0.1% to $1,101.15. Copper prices fell today as the dollar hovered near its highest levels in months, making greenback-priced metals more expensive and less appealing to holders of other currencies
Traditional Agricultures
Wheat futures rose as much as 2% today to hit a two-month high, as adverse weather in several major exporters stoked concerns about global supplies. Corn also climbed up to 2%, drawing support from the hot, dry weather in the United States, while soybeans firmed 1.5%.
Disclaimer
This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.
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