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S&P 500, Nasdaq Extend Runs Amid Inflation, Fed-Focused Week

Tailwinds stemmed from the Federal Reserve's interest rate-hike pause

Deputy Editor
Jun 16, 2023 at 2:42 PM
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It was a strong week on Wall Street, with inflation data in focus, as well as the Federal Reserve's rate-hike pause. Tuesday's consumer price index (CPI) reading for May showed inflation increasing at its slowest annual rate since March 2021, while Wednesday's producer price index (PPI) reading also came in cooler than expected. The widely anticipated pause in interest rate hikes injected positivity into the market, though the central bank alluded to more rate hikes to come. 

At this point on Friday, the Dow Jones Industrial Average (DJI) is headed for its third-straight weekly win, and the Nasdaq Composite (IXIC) is on track for its eighth-straight positive week -- its longest rally since 2019. Meanwhile, the S&P 500 Index (SPX) is eyeing its fifth consecutive weekly gain, or its longest streak since November 2021. Plus, the S&P 500 and Nasdaq both spent the last few days extending their highest peaks since April 2022

Stocks Hitting Fresh Highs

Several stocks climbed to new summits as well. Carnival (CCL) and Shopify (SHOP) both surged to 52-week highs following bull notes, while Adobe's (ADBE) one-year peak came after earnings. Artificial intelligence (AI) gave Adobe profits a boost, with software name Oracle (ORCL) hitting record highs on AI tailwinds as well. Though they did not reach the same heights, both Equitrans Midstream (ETRN) and Manchester United (MANU) staged impressive bounces this week. On the other end of the spectrum, UnitedHealth Group (UNH) hit a 52-week low after issuing a company warning.

Tech Making Moves

Alphabet (GOOGL) was in focus this week, after the European Union addressed anti-competitive concerns. Plus, the tech giant is facing employee backlash over its return-to-office policy. Facebook parent Meta Platforms (META) received a pair of price-target hikes amid the company's AI growth. Meanwhile, Oppenheimer downgraded fintech stock SoFi Technologies (SOFI), citing its high valuation in the short term. 

Holiday-Shortened Week Ahead

Housing data will headline the week after Juneteenth, with markets closed on Monday to observe the holiday. As the S&P 500 rallies, here is a long-term indicator for bulls from Schaeffer's Senior Quantitative Analyst Rocky White. It's important to note, also, that stocks could be in for a breather, per Senior Vice President of Research Todd Salamone. 

 

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