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US stocks fell sharply on Friday, June 3, from their previous highs, rounding off a volatile week as investors weighed the Fed’s rate hike plans against looming recessionary risks.
The S&P 500 fell 1.63% to 4,108.54. The Dow Jones shed 1.05% to 32,899.70. The NASDAQ Composite dropped 2.47% to 12,012.73, and the small-cap Russell 2000 fell 0.77% to 1,883.05.
This week, the market remained volatile as the central bank vowed further rate increases in June and July to rein in the roaring inflation, forcing consumers to restrict spending.
But by Thursday, the market recovered some losses after Fed Vice Chair Lael Brainard provided more clarity on the bank’s likely action post-July. The senior official indicated that it might give a brief pause to its rate strategy and evaluate if it should continue increasing it.
The late gains helped break seven consecutive weekly losses of Wall Street’s main indices, the longest streak of decline in decades.
On the economic front, US nonfarm payrolls increased by 390,000 in May, down from the adjusted April payroll figures of 436,000. The latest data from the Labor Department on Friday also showed that the US unemployment rate held steady at 3.6%.
The consumer discretionary and information technology sectors were the bottom movers on Friday. Ten segments of the index stayed in the red. The energy sector was the top gainer.
Shares of Tesla, Inc. (TSLA) dropped 9.22% after CEO Elon Musk said that the EV maker might trim around 10% of jobs due to tough business conditions.
The Micron Technology (MU) stock fell 7.20% after analysts lowered its price target, noting that its strong exposure to the electronic segment may prove unprofitable amid high inflation.
Shares of biotechnology company Turning Point Therapeutics, Inc. (TPTX) skyrocketed 118% after Bristol-Myers Squibb Company (BMY) said that it would acquire the company for US$4.1 billion in cash. The BMY stock rose 0.12% in intraday trading.
In the energy sector, Exxon Mobil Corporation (XOM) rose 1.51%, ConocoPhillips (COP) gained 2.77%, and EOG Resources, Inc. (EOG) surged 2.21%. China Petroleum & Chemical Corporation (SNP) and Schlumberger Limited (SLB) advanced 1.80% and 2.48%, respectively.
In consumer discretionary stocks, Amazon.com, Inc. (AMZN) declined 2.52%, Tesla, Inc. (TSLA) fell 9.22%, and Alibaba Group Holding Limited (BABA) plummeted 4.37%. Toyota Motor Corporation (TM) and Nike, Inc. (NKE) ticked down 3.18% and 1.73%, respectively.
In technology stocks, Apple Inc. (AAPL) dropped 3.86%, Microsoft Corporation (MSFT) slumped 1.66%, and NVIDIA Corporation (NVDA) declined 4.45%. Broadcom Inc. (AVGO) and ASML Holding N.V. (ASML) plunged 2.33% and 2.91%, respectively.
In the crypto space, Bitcoin (BTC) and Ethereum (ETH) slipped 2.28% and 3.55%, respectively. The global crypto market declined 2.57% to US$1.22 trillion at 4:18 pm ET.
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Futures & Commodities
Gold futures were down 0.94% to US$1,853.85 per ounce. Silver decreased by 1.41% to US$21.960 per ounce, while copper fell 1.78% to US$4.4715.
Brent oil futures increased by 3.15% to US$121.31 per barrel and WTI crude was up 2.99% to US$120.36.
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Bond Market
The 30-year Treasury bond yields were up 0.72% to 3.097, while the 10-year bond yields rose 1.00% to 2.944.
US Dollar Futures Index increased by 0.36% to US$102.195.
