Weekly Market Recap – June 23, 2023
Each of the principal U.S. stock indices experienced a decline of over 1%, marking an end to NASDAQ’s eight-week, S&P 500’s five-week, and Dow’s three-week consecutive gains. Apprehensions regarding potential increases in interest rates, along with the slowdown of the global economy, cast a shadow over the stocks.
The index reflecting the anticipation of short-term volatility in the U.S. stock market has dipped, continuing its downward trajectory to its lowest point since January 2020. The CBOE Volatility Index (VIX) concluded on Friday at 13.4—barely above its level prior to the COVID-19 outbreak and a 33% drop from its recent peak on May 24.
Contrasting the approach of the United States and a few other leading economies who are considering whether to moderate or halt their anti-inflation measures, the UK’s central bank chose a different path, increasing its key interest rate by half a percentage point. This sharp rise on Thursday brought the rate from 4.5% to 5.0%, the apex since 2008.
During his Congressional testimony, Fed Chairman Jerome Powell stated that the U.S. Federal Reserve still has a significant journey ahead in its mission to curb inflation. It is likely that more interest-rate hikes will be required in the ensuing months. After maintaining rates stable at its previous meeting, the Fed will evaluate whether to reinstate rate hikes during its July 25-26 session.
Fears over economic growth and energy demand projections pressured crude oil prices, resulting in nearly a 4% decline for the week. U.S. crude dropped below $70 per barrel on Thursday, with Friday’s price around $69, almost 17% less than its recent high on April 12.
A forthcoming report set to be published on Friday will determine whether the recent minor month-over-month increase in U.S. inflation persisted through May, as gauged by the U.S. Federal Reserve’s chosen metric for monitoring prices. The latest report indicated that the Personal Consumption Expenditures Price Index elevated at an annual rate of 4.4% in April, an increase from 4.2% in March—signifying a break from the preceding months’ declining pattern.
Major U.S. Economic Reports
| Report | Period | Actual | Previous |
| Home builder confidence index | June | 55 | 50 |
| Housing starts | May | 1.63M | 1.34M |
| Initial jobless claims | June 17 | 264K | 264K |
| U.S. current account | Q1 | -$219.3B | -$216.2B |
| Existing home sales | May | 4.3M | 4.29M |
| U.S. leading economic indicators | May | -0.7% | -0.6% |
| S&P flash U.S. services PMI | June | 53.3 | 54.9 |
| S&P flash U.S. manufacturing PMI | June | 49.0 | 48.4 |
Closing Prices for the Week
| Contract | Close |
|---|---|
| Dow Jones Industrials Average | 33,727.4 |
| S&P 500 Index | 4,348.33 |
| Nasdaq Composite | 13,492.5 |
| CBOE Volatility Index | 13.44 |
| S&P GSCI | 541.56 |
| S&P 500 E-Mini (Sep ’23) | 4,389.00 |
| 10-Year T-Note (Sep ’23) | 113-025 |
| U.S. Dollar Index Cash | 102.903 |
| Crude Oil WTI (Aug ’23) | 69.16 |
| Natural Gas (Aug ’23) | 2.843 |
| Gold (Aug ’23) | 1,929.6 |
| Silver (Jul ’23) | 22.354 |
| Corn (Dec ’23) | 588-0 |
| Wheat (Sep ’23) | 746-4 |
| Soybean (Nov ’23) | 1310-0 |
| Coffee (Sep ’23) | 164.85 |
| Sugar #11 (Oct ’23) | 24.29 |
Trading futures and forex involves significant risk of loss and is not suitable for everyone.
The post Weekly Market Recap – June 23, 2023 appeared first on World Cup Trading Championships.