US Markets Close Higher As Energy, Consumer Stocks Lead Broad Rally

All benchmark US indices closed higher on Wednesday, May 26, as investors resumed their bets on economy-linked stocks after inflation worries began to fade.

The S&P 500 was up 0.19% to 4,195.99. The Dow Jones Industrial Average increased 0.03% to 34,323.05. The NASDAQ Composite Index gained 0.59% to 13,738.00. The small-cap Russell 2000 gained 1.97% to 2,249.27.

Positive sentiments in the markets have led investors to bet big on a wide segment of stocks. Energy and consumer cyclical stocks saw major gains on the S&P 500. Real estate, financials, and basic materials advanced broadly on the indexes. 

Shares of lifestyle retailer Urban Outfitters surged more than 10% after it reported growth in the April quarter. Shares of retail chain Nordstrom (JWN) sank over 5% after a lacklustre earnings report. Stocks of Build-A-Bear Workshop (BBW) soared over 39% at the close.

In the corporate world, Amazon announced to purchase Hollywood’s iconic MGM Studio in a US$8.54 billion deal. It is expected to give a major push to its Prime Video segment.

The agreement will allow the ecommerce giant access to MGM’s vast repository of films, including blockbusters, classics, and critically acclaimed movies. Amazon plans to consolidate its video streaming business as it competes with Netflix and Walt Disney Co. The stock was marginally up 0.19% after the announcement.

Ford Motor Co. said it will boost spending on its electric vehicle division to US$30 billion, which includes previous expenditures, by 2025, a significant jump from its earlier forecast. Ford anticipates the total volume of EVs to increase by 40% globally in the next nine years. The company also plans to make its own batteries in the US and Asia in the coming years. The stock (NYSE:F) surged more than 8% after its latest spending forecast.

Facebook is facing another major challenge in Europe, where European lawmakers are mulling to formally launch an antitrust probe, focusing on its ecommerce Marketplace. EU regulators have stepped up inquiries into allegations of market monopoly against several big tech giants, including Google, which may have profited at the cost of smaller, independent businesses. The outcome may result in heavy penalties and new restrictions for the firms.

Also Read: Amazon Announces US$8.45B Deal To Buy MGM

Facebook stock (FB) was trading flat at US$327.66 at the close. GameStop (GME) jumped more than 15%, while AMC Entertainment (AMC) surged 19%, leaving many investors baffled at their sudden rally in intra-day trade.

Meanwhile, the Securities and Exchange Commission (SEC) said that it is exploring ways to ensure greater protection to investors in SPAC deals. Its top administrator Gary Gensler told a house committee that it is looking into various aspects before framing new guidelines.

Energy, financials, real estate, consumer cyclicals, basic materials, academic & educational services, and industrials were among the top gainers in Wednesday’s session.

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Top Gainers

Top performers on S&P 500 included Ford Motor Co (8.51%), Penn National Gaming Inc (4.70%), Gap Inc (4.16%), Discovery Inc (3.97%). On NASDAQ, top performers were Lizhi Inc (57.60%), Oriental Culture Holding Ltd (29.15%), PDL Community Bancorp (24.78%), Ucloudlink Group Inc (22.12%). On Dow Jones, Nike Inc (1.91%), Salesforce.Com Inc (0.87%), Goldman Sachs Group Inc (0.79%), Dow Inc (0.77%) were the leaders.
 

Top Losers

Top laggards on S&P 500 included Ball Corp (-4.23%), Walgreens Boots Alliance Inc (-4.02%), Boston Scientific Corp (-2.79%), Zimmer Biomet Holdings Inc (-2.13%). On NASDAQ, Larimar Therapeutics Inc (-33.46%), Scopus Biopharma Inc (-15.22%), Intrusion Inc (-13.74%), Carlotz Inc (-13.44%). On Dow Jones, Walgreens Boots Alliance Inc (-4.02%), Amgen Inc (-1.43%), Visa Inc (-0.85%), Cisco Systems Inc (-0.75%) were the laggards.

Volume Movers        

Top volume movers were Sundial Growers Inc (28.52M), Pieris Pharmaceuticals Inc (13.58M), Lizhi Inc (12.89M), Nabriva Therapeutics PLC (12.85M), Apple Inc (12.50M), Li Auto Inc (9.91M), Castor Maritime Inc (9.06M), Ford Motor Co (36.91M), General Electric Co (15.00M), Bank of America Corp (12.85M), Wells Fargo & Co (9.50M), Advanced Micro Devices Inc (6.51M), Twitter Inc (6.31M), Cisco Systems Inc (6.31M), Microsoft Corp (5.88M), Coca-Cola Co (4.69M), and JPMorgan Chase & Co (4.31M).

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Futures & Commodities

Gold futures were down 0.06% to US$1,896.80 per ounce. Silver decreased 1.04% to US$27.765 per ounce, while copper was up 0.36% to US$4.5225.

Brent oil futures remained flat at US$68.67 per barrel and WTI crude was up 0.14% to US$66.16.

Bond Market

The 30-year Treasury bond yields were down 0.08% to 2.258, while the 10-year bond yields increased 0.97% to 1.579.

US Dollar Futures Index was up 0.48% to US$90.055.