Wall Street’s indexes fluctuated amid recession fears and a yen surge, capping off a volatile week in global markets
All major indexes faced weekly losses, with the S&P 500 and Nasdaq both on track for a fourth consecutive decline.
Global markets saw increased volatility after weak U.S. job reports and Japan’s rate hike, triggering yen appreciation and currency carry trade unwinding.
After jobless claims dropped unexpectedly, U.S. stocks surged, and the CBOE Volatility Index fell to 22.23 points.
Analysts are still skeptical. “Further data will be needed to assure that last week’s jobs number isn’t affirming heightened risk of an imminent recession,” said Mark Luschini, chief investment strategist at Janney Montgomery Scott.
“In the meantime, equities may be in a trading range above that of the recent sell off low but no new catalyst for a sustained advance to ensue.”.
Most megacap and growth stocks rose, except Alphabet, down 1%. Meanwhile, healthcare and consumer discretionary sectors led S&P gains.
Investors now await next week’s July data on consumer prices and retail sales, which could indicate a potential soft landing.
Fed policymakers are confident inflation is cooling, allowing future rate cuts, and will base decisions on upcoming economic data.
According to CME’s FedWatch Tool, money markets are split between a 50 or 25-basis point Fed rate cut in September.
By 11:25 a.m. ET, the Dow rose 35 points, the S&P 500 added 12 points, and Nasdaq gained 27 points.
Elf Beauty fell 15.8% due to weak forecasts, while Paramount Global rose 1.2% on strong streaming growth.
Take-Two Interactive Software rose 2.8% as it anticipates net bookings growth for fiscal years 2026 and 2027.
Expedia rose 8.6% after exceeding profit expectations, while The Trade Desk gained 8.7% on a strong revenue forecast.
Advancing issues outnumbered decliners 1.33-to-1 on NYSE and 1.15-to-1 on Nasdaq.
The S&P 500 saw eight highs and three lows, whereas the Nasdaq Composite recorded 39 highs and 106 lows.
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