US stocks advance after energy, tech-led gains; NEE, AAPL rise

US stocks recovered some losses on Thursday, June 23, after previous day’s sharp decline on recession fears as mega-cap tech and energy stocks stormed higher amid a volatile session.

The S&P 500 rose 0.95% to 3795.73. Dow Jones gained 0.64% to 30677.36. The Nasdaq Composite was up 1.62% to 11232.19, and the small-cap Russell 2000 increased 1.27% to 1711.67.

The indices were trading lower for most of the day before picking up some pace near the closing hour. Investors treaded carefully amid a volatile session.

On Wednesday, stocks fell sharply after Fed Chair Jerome Powel told a Senate banking committee that a recession could be imminent due to higher interest rates to subdue inflation.

The near-certain adverse economic impacts highlighted in Powell’s comments deepened investors’ worries. Powell reiterated the concerns on the second day of the Congressional hearing.

The initial optimism of a so-called soft-landing, bypassing a more intense recession, faded quickly after the central bank’s views on the economy.

In the energy market, the price momentum slowed over the past two days on concerns that a recession could cut demand for fuel.

International benchmark Brent crude futures, fell 0.8% to around US$110 per barrel, while the US standard WTI crude declined around 1% to about US$105 a barrel on Thursday morning.

President Joe Biden has called on Congress to suspend the federal gas tax to reduce the rapid rise in prices. The federal tax for gasoline and diesel is currently 18 cents and 24 cents per gallon, respectively.

On the labor market front, the jobless benefits claims dipped to 229,000 in the week ended June 18 from a revised 231,000 the week before. The Labor Department’s data also showed that despite a second week of decline in jobless claims, it remained near a five-month high.

Sectors like technology and housing saw significant job cuts amid recession fears.

Growth stocks saw mixed performance. Tech giants like Apple (AAPL), Microsoft (MSFT), and Meta Platforms (META) saw gains, while others like TSLA and NVDA closed in the red.

Sector Summary

Out of the 11 sectors of the S&P 500 index, six were in the positive territory. Utilities, real estate, consumer cyclicals, and technology stocks rose, while industrials and financials were laggards.

In utility sector, NextEra Energy, Inc. (NEE) rose 3.36%, Duke Energy Corporation (DUK) increased 3.24%, and The Southern Company (SO) climbed 2.35%.

In healthcare sector, Johnson & Johnson (JNJ) gained 2.23%, UnitedHealth Group Incorporated (UNH) ascended 2.07%, and Eli Lilly and Company (LLY) rose 1.97%.

In technology stocks, Apple Inc. (AAPL) gained 2.16%, Microsoft Corporation (MSFT) rose 2.26%, and NVIDIA Corporation (NVDA) was down 0.83%. Shares of Meta Platform (META) rose 1.86%, and Amazon.com Inc. (AMZN) stock gained 3.2% at the close of the regular session.                     

In real estate, American Tower Corporation (AMT) increased 2.50%, Prologis, Inc. (PLD) rose 2.41%, and Crown Castle International Corp. (CCI) was up 2.09%.

In industrials, Raytheon Technologies Corporation (RTX) dropped 0.86%, Honeywell International Inc. (HON) fell 1.78%, and Lockheed Martin Corporation (LMT) plunged 1.16%.

In the financials sector, Berkshire Hathaway Inc. (BRK-A) slid 0.83%, Visa Inc. (V) gained 1.45%, and JPMorgan Chase & Co. (JPM) 1.09%.

In basic materials, BHP Group Limited (BHP) decreased 1.55%, Linde plc (LIN) dropped 0.53%, and Rio Tinto Group (RIO) fell 3.03%.

In the crypto market, Bitcoin and Ethereum gained 5.01% and 7.86%, respectively. The broader crypto market rose 4.73% to US$921.98 billion.  

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Futures & Commodities

Gold futures were down 0.78% to US$1,824.00 per ounce. Silver decreased by 2.32% to US$20.925 per ounce, while copper slipped 5.19% to US$3.7393.

Brent oil futures increased by 0.01% to US$109.81 per barrel and WTI crude was down 2.03% to US$104.03.

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Bond Market

The 30-year Treasury bond yields plunged 1.12% to 3.206, while the 10-year bond yields fell 2.13% to 3.089.

US Dollar Futures Index gained 0.17% to US$104.160.