The Dow finished more than 100 points below the flatline on Friday, the S&P 500 and the Nasdaq lost nearly 0.4% and 0.7%, respectively, as investors continued to assess the outlook of monetary policy for the Fed amid a massive options expiration at the second 2023’s quadruple witching date. Among stocks, Microsoft fell 1.7% and Micron Technology dropped 1.7%. Conversely, Virgin Galactic surged 16.3% on plans for commercial space tourism. Tesla added 1.8% after hitting a 37-week high during the session and Adobe gained 0.8% with positive earnings and guidance. On the week, the Dow Jones added 0.9%, marking a three-week winning streak despite the Fed's warning of future rate hikes. The S&P 500 gained 2.2%, its fifth consecutive weekly gain, the longest since November 2021, rising 2.2%. The Nasdaq was up 2.7% for an eighth straight positive week. Markets will be closed on Monday for the Juneteenth holiday.
The benchmark Stoxx 600 rose to a 3-week high on Friday, and the German DAX hit a new all-time high, with luxury and defensive stocks leading the gains. China-focused luxury stocks like LVMH and Richemont added nearly 3% each. Defensive sectors, including healthcare and utilities, also performed well, rising 0.9% and 1.3% respectively, reaching a four-week peak. Among single stocks, defense contractor Rheinmetall climb almost 5% following an anticipated ammunition deal with the German government. On the other hand, building materials supplier Travis Perkins decline nearly 7% after warning of profit challenges. European stocks booked a 1.5% for the week, the most in over two months after major central bank policy decisions, with the ECB raising borrowing costs and signaling further policy tightening.
The BSE Sensex closed 470 points higher at 63,365 on Friday, a record-high close, with support from banks as signs of a slowing US economy trimmed the outlook of the Federal Reserve's hawkishness. Equities continued to benefit from a sharp influx of foreign capital as the country’s strong manufacturing sector supports domestic growth and brings resilience to economic slowdowns seen in China and the West. International investors are also attracted by dovish expectations for the Reserve Bank of India as slowing domestic inflation erased concerns that the central bank could soon resume tightening. Financial companies led the gains, with Bajaj Finserv adding 2.4% while IndusInd Bank and Kotak Mahindra Bank added 1.4% each to rebound from yesterday’s slump. Tata Steel also closed in the green amid bets that incoming Chinese stimulus could support base metal demand. On the other hand, tech shares booked losses with a 1.6% drop for Wipro ahead of its share buyback cutoff date.
The S&P/TSX Composite index ended 0.2% lower at the 19,970 level on Friday, easing earlier gains of the session but booked a 0.5% gain on the week. Investors were assessing the outlook of monetary policy for the Fed and the BoC. Energy and tech shares were the main draggers and finished 0.7% and 1.2% lower, respectively. Miners also booked losses after gold prices edge down. Financial shares finished marginally lower amid slight gains in shares of RBC, TD Bank, and BMO. On the data front, foreign investors reduced holdings of Canadian equities by CAD 8.2 billion in April. Also, wholesale sales in the period were revised to show a sharp contraction.
Brazil’s Ibovespa stock index closed 0.4% lower around 118,720 on Friday, correcting part of the recent gains and on a day of stock options expiration, bucking the trend in international markets. Meanwhile, investors continued to digest the hawkish signals from the US Federal Reserve and monitored upbeat domestic economic data. Locally, the IBC-Br index of economic activity in Brazil, a leading indicator of GDP, rebounded by a more-than-expected 0.56% from a month earlier in April 2023, which bodes well for the country's outlook in the second quarter. Meanwhile, traders are shifting their focus to the upcoming Senate's vote on the fiscal framework and the Central Bank's monetary policy decision next week. On the corporate front, Atacadao (-5.7%) led the losses, followed by Rumo (-4.8%) and Via (-3.7%). By contrast, top gainers were CVC (+5.8%), CPFL Energia (+3.3%) and DEXCO (+3%).
