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Lukewarm economic report contributes to Wall Street slump


Jun 5, 2023

US stocks stumbled on Monday after their best week since March. The S&P 500 traded little changed in the afternoon, while the Dow Jones Industrial Average was down 0.4%, and the Nasdaq Composite was up 0.1%. Economists had expected better from the market after reports indicating the growth of construction, accommodation, and service companies in the US in May for the fifth consecutive month. Nonetheless, the mixed outlook for the US economy continues as it slows under the weight of rising interest rates but defies expectations of a recession.

On the bright side, the S&P 500 had slightly more gainers than losers, thanks to market powerhouse Apple, which helped stabilize Wall Street. Oil prices surged ahead of an event rumoured to unveil a head-mounted virtual headset. Despite the rise, prices have still fallen from their peak of $120 a year ago.

This week, there is relatively little movement expected from Wall Street, as earnings reports and economic data are neglected. However, market experts are paying attention to critical issues, such as whether the economy is slipping into recession or if inflation is softening enough for the Fed to cut rates.

Traders are expecting the Fed to maintain its current interest rate policy. Wall Street has had a strong bull market for weeks, hovering just below 4290 and a day above 4292.44, more than 20% above its mid-October level. The economy and job market have been remarkably strong despite recent challenges, which has helped the US avoid recession.

In overseas stock markets, European indices decreased, while Japan’s Nikkei Stock Average saw a 2.2% increase.

By Editor

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