S&P 500 returns to 4,000 as US stocks record best month since 2020

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    • The three major US stock indexes rose between 0.97% and 1.88%.
    • The risk-on momentum from last Wednesday supported US stocks, lifting the profits of US companies Amazon and Apple.
    • The U.S. dollar index dipped below 106,000, while the 10-year U.S. Treasury yield was around 2.654%.

    USA actions ended the week on a higher note as Amazon and Apple rose as both companies’ earnings beat analysts’ estimates after the US Federal Reserve hiked rates 75 b.p. for the week, sparking a rally that continued through the end of the week/month.

    The S&P 500 ended the week up 1.42% at 4,130.28, while the tech-heavy Nasdaq gained 1.88% at 12,390.69. In addition, the Dow Jones Industrial Average followed suit and rose 0.97% to 32,845.13.

    By sector, the leading sectors are energy with a growth of 4.51%, followed by consumer staples and industrials, which each recorded growth of 4.27% and 2%, respectively. Consumer Staples and Health were the biggest losers, down 0.72% and 0.35% each.

    Shares fell after Walmart cut its profit forecast, citing double-digit food prices and high energy prices. In addition, the US Federal Reserve’s monetary policy decision is approaching, and the escalating energy crisis in Europe has reignited recession fears among traders who have turned to safe haven assets, namely the dollar.

    Global stocks continue to trade positively, reflecting upbeat sentiment. As for the data, the US Department of Commerce revealed that Personal Personal Consumption expenditure rose 1% for the month, beating estimates of 0.9%. On an annual basis, it increased by 6.8% against the 6.7% predicted by analysts.

    The University of Michigan reported late that its latest reading of consumer sentiment for July beat expectations, rising to 51.5. In the same survey, inflation expectations over a 5-year horizon ranged from 2.8% (preliminary) to 2.9%, although lower than June’s reading.

    Meanwhile, Fed officials began crossing wires. The first was in Atlanta Fed President Rafael Bostick, who said the Fed “will need to do more in terms of changing interest rates,” and added that he does not think the country is in a recession. Meanwhile, Christopher Waller said “a soft landing is the likely outcome for the labor market going forward.”

    elsewhere US dollar index (DXY), a measure of the dollar’s value against some currencies, fell 0.67% to 105.828, while the 10-year U.S. Treasury yield fell two basis points to 2.654%.

    In the shopping complex, WTI increased by 1.95%, moving to $98.30 per day. Meanwhile, precious metals like gold (XAU/USD) was up 0.78% to trade at $1,764.00 per troy ounce.

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