The stock market began the week on a shaky note, causing the S&P 500 (-0.04%) to snap its four-day streak that lifted the benchmark index to a one-month high last week. The S&P 500 ended ahead of the Nasdaq (-0.4%) and Dow (-0.6%).
The S&P 500 flashed a modest gain in early trade that pushed the index above its 200-day moving average (4472), but that area served as resistance today while the 50-day moving average (4428) offered a measure of support to the benchmark index. The S&P returned into negative territory in the early afternoon after Fed Chairman Powell said that the FOMC could raise rates by more than 25 bps on one or multiple occasions this year.
Six sectors finished the day in negative territory with communication services (-0.7%) and consumer discretionary (-0.8%) showing the biggest losses while commodity-linked energy (+3.8%) and materials (+0.9%) outperformed throughout the day.
The communication services sector was pressured by losses in almost all components with Meta Platforms ( FB 211.49, -5.00, -2.3%) pacing the weakness after a Russian court charged the company with extremism and banned access to Facebook and Instagram from Russia.
In the discretionary sector, Home Depot ( HD 329.37, -11.37, -3.3%) pulled back after recording five consecutive gains while NIKE ( NKE 130.19, -1.05, -0.8%) snapped a four-day streak ahead of tonight’s release of quarterly results.
On the upside, the energy sector outperformed throughout the day thanks to strong support from crude oil, which climbed $7.18, or 7.0%, to $110.21/bbl amid continued speculation about an EU ban on Russian oil imports.
Steel names contributed to strength in the materials sector after Australia banned exports of aluminum to Russia. Nucor ( NUE 142.75, +6.59, +4.8%) rallied to a fresh record while fertilizer stocks also outperformed notably with CF Industries ( CF 101.31, +6.06, +6.4%) reaching a new record high.
In other corporate news, Boeing ( BA 185.90, -6.93, -3.6%) fell to levels from Wednesday after a 737-800 jet manufactured by the company crashed in China, killing all 132 occupants.
Treasuries retreated throughout the day, sending the 10-yr yield higher by 17 bps to 2.32%, a level not seen since May 2019. The market will not receive any data tomorrow.
- Dow Jones Industrial Average -4.9% YTD
- S&P 500 -6.4% YTD
- Russell 2000 -8.0% YTD
- Nasdaq Composite -11.6% YTD
Overseas:
- Europe: DAX -0.6%, FTSE +0.5%, CAC -0.6%
- Asia: Nikkei market closed, Hang Seng -0.9%, Shanghai +0.1%
Commodities:
- Crude Oil +7.18 @ 110.21
- Nat Gas +0.05 @ 4.94
- Gold -2.20 @ 1928.70
- Silver +0.16 @ 25.25
- Copper -0.03 @ 4.70