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New York — Wall Street Closed at a high price on Friday's light trade, investors headed for a long holiday weekend and embarked on the second half looking for a catalyst to move the next market.
All three major US stock indexes have reversed their initial losses in the first half of the worst stock market in decades, ending in the positive territory.
Still, all three indexes recorded losses for the week.
"We are heading for a holiday weekend and holding a midnight relief rally," said Joseph Sroka, Atlanta's Chief Investment Officer at NovaPoint. "But investors may have to wait back from the holiday weekend to see if it's sustainable at the beginning of a new quarter."
Market participants are currently looking at the second-quarter earnings season, the Ministry of Labor's June Employment Report, and the Federal Reserve Monetary Policy Conference scheduled for late July.
After Micron Technology Inc warned about cooling demand, the microchip sector plummeted and its share reduced the broader semiconductor sector.
Concerns about declining demand over decades-high inflation is reflected in the Institute for Supply Management (ISM) Manufacturing Managers Index for both new order entry prices. Showed deceleration.
The ISM report seems to support the view that the economy is chilling and inflation appears to be past its peak. This could allow the Fed to wiggle the dovish pivot room after the second expected 75 basis point rate hike in July.
"The Fed will need to see more evidence to change its mindset about further rate hikes," said Ingalls, senior portfolio strategist {55. } Snyder Tim Grisky said. New York. "Despite the early signs that inflation may have peaked, there is still a lot of uncertainty about the economy and inflation."
Preliminary data show S&The P 500 rose 41.01 points (1.08%) to finish at 3,825.39 points and the Nasdaq Composite index rose 101.49 points (0.92%) to 11,130.23. The Dow Jones Industrial Average rose 320.77 points (1.04%) to 31,096.20.
The second quarter reporting season began in a few weeks and was announced in advance by 130 companies on the S&P500. According to Refinitiv data, 45 were positive and 77 were negative, with a weaker negative / positive ratio than a year ago.
Market participants will listen carefully to forward guidance in the prospect that profit margins will be hit by the impact of inflation and declining consumer demand.
Analysts expect gross profit growth for the S&P 500 in the second quarter to be 5.6%. This is down from the projected 6.8% at the beginning of the quarter, according to Refinitiv.
Meta Platforms Inc fell after Facebook parent company CEO Mark Zuckerberg warned employees to prepare for a serious recession.
Department store chain Kohl's Corp shares fell following a decision to discontinue negotiations on a possible sale to a franchise group.
(Report by Stephen Culp, additional report by Amruta Khandekar and Sruthi Shankar in Bangalore, edited by David Gregorio)
