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Market News S&P 500 closes flat in May, EU plans to immediately ban 75% of Russian oil imports
S&P 500 closes flat in May, EU plans to immediately ban 75% of Russian oil imports
On the last trading day of May, U.S. stocks continued their month-long volatile trend, closing down across the board.
2022-06-01
10710
On the last trading day of May, U.S. stocks continued their month-long volatile trend, closing down across the board. As of the close, the Dow fell 222.8 points, or 0.7%, to 32,990.1 points; the S&P 500 fell 26.1 points, or 0.6%, to 4,132.2 points; the Nasdaq fell 2% within the day, and finally closed at 12,081.4 points, down 49.7 points, or 0.4 points %.
Peter Boockvar, chief investment officer at consultancy Bleakley Advisory Group, said: “The market is digesting last week’s sharp rally and trying to figure out a case for higher stocks. The key questions about how to deal with inflation, monetary tightening and rising interest rates remain Up in the air, we're far from out of the woods."
In terms of sectors, energy stocks were the worst performing S&P 500 sector, Chevron closed down 2.0% and Occidental Petroleum fell 2.2%; the health care sector was under pressure, UnitedHealth was the worst performing Dow component, closing down 2.0% , Johnson & Johnson fell 0.9%; some technology giants provided support for the broader market, Amazon surged 4.4%, and Google parent Alphabet rose 1.3%.
High inflation and low growth have become the consensus of the market
To sum up May, U.S. stocks and even global stock markets experienced turmoil as investors tried to assess the global economic outlook. U.S. economic data fell short of expectations, and companies issued profit warnings one after another, exacerbating investor concerns about high inflation, and the S&P 500 briefly touched a bear market. In the past month, the Dow and S&P 500 closed almost flat. The above-mentioned stock indexes rebounded strongly last week, recovering the losses of the previous three weeks. The Nasdaq fell 2.1% in May. At present, the Nasdaq is down more than 25% from its previous high, the Dow is 11% away from its all-time high, and the S&P 500 is 14% below its January high.
Morgan Stanley chief U.S. stock strategist Michael Wilson issued a report on May 31, saying that it is very difficult to reverse the extreme situation, high inflation and low growth have been the market consensus, but the price has been fully reflected. The more U.S. stocks rebound, the more hawkish Fed policy will be.
According to Xinhua, the leaders of EU member states have agreed on a sixth round of sanctions against Russia. European Council President Michel Michel issued a document late on the 30th local time, saying that the import of 75% of Russian oil will be banned immediately, with a temporary exception for oil supplied through pipelines. Before the end of this year, the EU will cut oil imports from Russia by 90% to reduce the source of Russian funds and put "maximum pressure" on Russia. Data show that 36% of the EU's oil imports come from Russia.
Stimulated by the above news, WTI crude oil futures once approached $120/barrel, but then it was reported that OPEC was considering suspending Russia's participation in the OPEC+ oil production agreement. , at $114.67 a barrel; Brent crude futures closed up $1.2, or nearly 1%, at $122.84 a barrel. The two oil prices closed higher in May, rising for the sixth consecutive month, with a cumulative increase of more than 70% during the period.
Biden meets Powell
U.S. President Biden met with Federal Reserve Chairman Powell on May 31, local time, and held talks on inflation and economic issues. This is the third meeting between the two, and Treasury Secretary Yellen attended. Brian Deese, director of the White House Council of Economic Advisers, said after the meeting that the meeting was constructive and focused on the outlook for the U.S. and global economy. He also said that Biden respects the independence of the Federal Reserve.
Before the meeting, Biden announced an inflation control plan, blaming the situation in Ukraine for rising inflation, and saying that controlling inflation is the main responsibility of the Federal Reserve. Biden has promised not to interfere with the Fed, but will guide the economy's transition to steady growth while addressing high inflation.
At the level of economic data, on May 31, local time, the S&P CoreLogic Case-Shiller index, which measures the average house price of major U.S. cities, was released. In March, U.S. house prices rose by 20.6% year-on-year, higher than the previous value of 20.0%. The composite index of housing prices in the 20 largest cities surged by 21.2% year-on-year, compared with the previous value of 20.3%.
Craig Lazzar, managing director of S&P Dow Jones Indices, said the March report showed that the housing market remained strong, with all 20 major cities posting double-digit year-on-year home price growth, with 17 of them accelerating from February. “With the Fed raising rates, mortgage rates have also moved higher year-over-year, meaning that macroeconomic conditions may not support uncharacteristic home price increases for longer. It’s reasonable to assume that home price gains will start to slow, though predicting an inflection point. It's still very difficult."
Article source: First Financial
Peter Boockvar, chief investment officer at consultancy Bleakley Advisory Group, said: “The market is digesting last week’s sharp rally and trying to figure out a case for higher stocks. The key questions about how to deal with inflation, monetary tightening and rising interest rates remain Up in the air, we're far from out of the woods."
In terms of sectors, energy stocks were the worst performing S&P 500 sector, Chevron closed down 2.0% and Occidental Petroleum fell 2.2%; the health care sector was under pressure, UnitedHealth was the worst performing Dow component, closing down 2.0% , Johnson & Johnson fell 0.9%; some technology giants provided support for the broader market, Amazon surged 4.4%, and Google parent Alphabet rose 1.3%.
High inflation and low growth have become the consensus of the market
To sum up May, U.S. stocks and even global stock markets experienced turmoil as investors tried to assess the global economic outlook. U.S. economic data fell short of expectations, and companies issued profit warnings one after another, exacerbating investor concerns about high inflation, and the S&P 500 briefly touched a bear market. In the past month, the Dow and S&P 500 closed almost flat. The above-mentioned stock indexes rebounded strongly last week, recovering the losses of the previous three weeks. The Nasdaq fell 2.1% in May. At present, the Nasdaq is down more than 25% from its previous high, the Dow is 11% away from its all-time high, and the S&P 500 is 14% below its January high.
Morgan Stanley chief U.S. stock strategist Michael Wilson issued a report on May 31, saying that it is very difficult to reverse the extreme situation, high inflation and low growth have been the market consensus, but the price has been fully reflected. The more U.S. stocks rebound, the more hawkish Fed policy will be.
According to Xinhua, the leaders of EU member states have agreed on a sixth round of sanctions against Russia. European Council President Michel Michel issued a document late on the 30th local time, saying that the import of 75% of Russian oil will be banned immediately, with a temporary exception for oil supplied through pipelines. Before the end of this year, the EU will cut oil imports from Russia by 90% to reduce the source of Russian funds and put "maximum pressure" on Russia. Data show that 36% of the EU's oil imports come from Russia.
Stimulated by the above news, WTI crude oil futures once approached $120/barrel, but then it was reported that OPEC was considering suspending Russia's participation in the OPEC+ oil production agreement. , at $114.67 a barrel; Brent crude futures closed up $1.2, or nearly 1%, at $122.84 a barrel. The two oil prices closed higher in May, rising for the sixth consecutive month, with a cumulative increase of more than 70% during the period.
Biden meets Powell
U.S. President Biden met with Federal Reserve Chairman Powell on May 31, local time, and held talks on inflation and economic issues. This is the third meeting between the two, and Treasury Secretary Yellen attended. Brian Deese, director of the White House Council of Economic Advisers, said after the meeting that the meeting was constructive and focused on the outlook for the U.S. and global economy. He also said that Biden respects the independence of the Federal Reserve.
Before the meeting, Biden announced an inflation control plan, blaming the situation in Ukraine for rising inflation, and saying that controlling inflation is the main responsibility of the Federal Reserve. Biden has promised not to interfere with the Fed, but will guide the economy's transition to steady growth while addressing high inflation.
At the level of economic data, on May 31, local time, the S&P CoreLogic Case-Shiller index, which measures the average house price of major U.S. cities, was released. In March, U.S. house prices rose by 20.6% year-on-year, higher than the previous value of 20.0%. The composite index of housing prices in the 20 largest cities surged by 21.2% year-on-year, compared with the previous value of 20.3%.
Craig Lazzar, managing director of S&P Dow Jones Indices, said the March report showed that the housing market remained strong, with all 20 major cities posting double-digit year-on-year home price growth, with 17 of them accelerating from February. “With the Fed raising rates, mortgage rates have also moved higher year-over-year, meaning that macroeconomic conditions may not support uncharacteristic home price increases for longer. It’s reasonable to assume that home price gains will start to slow, though predicting an inflection point. It's still very difficult."
Article source: First Financial
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