A trader works on the floor of the New York Stock Exchange (NYSE) in New York, USA, June 22, 2022. REUTERS / Brendan McDermid
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- S&P 500 energy shares among the few profitable
- Robinhood rises with the upgrade of Goldman Sachs
- Dow flat, S&P up 0.25%, Nasdaq down 0.34%
June 27 (Reuters) – The Nasdaq Composite Index fell from Monday afternoon trading, driven by high stock growth as last week’s rally to ease inflation fears lost momentum as a recovery in oil prices boosted energy companies.
“We had a nice rally last week, so I think we’re seeing some profit this morning,” said Dennis Dick, his own trader at Bright Trading LLC in Las Vegas.
“The stocks that rose the most last week are the ones that have been hit hardest here today.
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The Nasdaq Composite Technology Index (.IXIC), which rose 7.5 percent last week, fell 0.3 percent, the only drop among the three major indexes.
Investors relied on the retreat of oil prices from the three-month highs reached in June to ease inflationary pressures and possibly force the US Federal Reserve to ease its aggressive policy tightening.
Monday’s data showed that new orders for US-made capital goods and supplies rose sharply in May, indicating a steady increase in business equipment costs in the second quarter. Read more
Oil prices also returned to positive territory, raising the energy index S&P 500 (.SPNY) by 2.5%, controlling expectations for inflation, falling amid lower energy prices.
The US Federal Reserve quickly raised interest rates to curb 40 years of inflation, fueling fears that its actions could lead the world’s largest economy to recession.
The S&P 500 (.SPX) reference index recorded a 20% drop from its January closing peak earlier this month to confirm a bear market.
For the quarter, the S&P 500 and the Dow Jones Industrial Average (.DJI) focused on a second consecutive quarterly decline for the first time since the second and third quarters of 2015.
“We think they’ve reached the bottom for the quarter,” said Jay Hatfield, chief investment officer at Infrastructure Capital Management in New York.
“June is usually a weak month because what happens is that there are very few profit reports. So we think we’ve bottomed out in June.”
At 12:15 pm, the Dow Jones Industrial Average (.DJI) rose 16.97 points, or 0.05%, to 31,517.65, and the S&P 500 (.SPX) rose 9.75 points, or 0.25%, to 3921.49 points, and Composite (.IXIC) decreased by 39.09 points, or 0.34%, to 11,568.53.
Shares of Robinhood Markets Inc (HOOD.O) rose 3.3% after Goldman Sachs improved the shares of the retail broker to “neutral” from “sell”.
However, Goldman Sachs downgraded Coinbase Global Inc (COIN.O) to “sell” from “buy”, sending shares of the cryptocurrency exchange lower by 8.7%.
Advanced emissions outperform the NYSE’s 1.69 to 1 and Nasdaq’s 1.08 to 1 declines.
The S&P index recorded a new 52-week high and 29 new lows, while the Nasdaq recorded 21 new highs and 59 new lows.
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Report by Shreyashi Sanyal and Amruta Handekar in Bengaluru; Edited by Vinay Duvedi and Shunak Dasgupta
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