Highlights
Equities slipped Wednesday as megacaps in particular remained under consolidative pressure after their runup so far this year. Risk appetite suffered from caution ahead of Thursday's US consumer price report as the market waits for clues on whether the Federal Reserve can halt its rate hike campaign.
The Dow industrial average declined 0.5 percent, the S&P 500 lost 0.7 percent, and the Nasdaq fell 1.2 percent. US Treasury yields were mostly higher, the dollar declined, and oil prices rose.
The S&P found support for a second day running just above 4460 but ran into resistance around 4500. On the positive side, interest rates have been well behaved as bond markets have readily absorbed heavy new US Treasury issuance this week amid strong demand from real investors.
Among equity sectors, energy stocks outperformed as oil prices extended their rally. US benchmark West Texas intermediate crude traded above $84, its highest since November. Oil's gains came despite news of rising US crude oil inventories in the latest week. Traders are focusing on Saudi output cuts and new threats to global supplies linked to the Russia-Ukraine conflict.
Defensive sectors held up relatively well, including staples retailers, telecom, pharma, drug stores, health & personal care, and waste haulers.
On the downside, technology shares had an especially bad day, led by Intel, Nvidia, and Microsoft. Other lagging sectors included banks, airlines, automakers, and media & entertainment.
The Dow industrial average declined 0.5 percent, the S&P 500 lost 0.7 percent, and the Nasdaq fell 1.2 percent. US Treasury yields were mostly higher, the dollar declined, and oil prices rose.
The S&P found support for a second day running just above 4460 but ran into resistance around 4500. On the positive side, interest rates have been well behaved as bond markets have readily absorbed heavy new US Treasury issuance this week amid strong demand from real investors.
Among equity sectors, energy stocks outperformed as oil prices extended their rally. US benchmark West Texas intermediate crude traded above $84, its highest since November. Oil's gains came despite news of rising US crude oil inventories in the latest week. Traders are focusing on Saudi output cuts and new threats to global supplies linked to the Russia-Ukraine conflict.
Defensive sectors held up relatively well, including staples retailers, telecom, pharma, drug stores, health & personal care, and waste haulers.
On the downside, technology shares had an especially bad day, led by Intel, Nvidia, and Microsoft. Other lagging sectors included banks, airlines, automakers, and media & entertainment.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
