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Wall Street posts solid gains, as defensives, tech shine

Economy Jun 23, 2022 07:14PM ET
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2/2 © Reuters. FILE PHOTO: A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., June 16, 2022. REUTERS/Brendan McDermid 2/2

By Lewis Krauskopf, Devik Jain and Sruthi Shankar

(Reuters) - Wall Street's main indexes posted solid gains on Thursday, fueled by strong performance from defensive and tech shares that outweighed declines for economically sensitive groups as worries persisted about a potential recession.

The benchmark S&P 500 swung between positive and negative during the session, but stocks picked up steam heading into the market's close. Benchmark U.S. Treasury yields fell to two-week lows, supporting tech and other rate-sensitive growth stocks.

Trading has remained volatile in the wake of the S&P 500 last week logging its biggest weekly percentage drop since March 2020. Investors are weighing how far stocks could fall after the index earlier this month fell over 20% from its January all-time high, confirming the common definition of a bear market.

“There is a tremendous amount of uncertainty about the outlook and so the market is confused,” said Walter Todd, chief investment officer at Greenwood Capital in South Carolina.

The Dow Jones Industrial Average rose 194.23 points, or 0.64%, to 30,677.36, the S&P 500 gained 35.84 points, or 0.95%, to 3,795.73 and the Nasdaq Composite added 179.11 points, or 1.62%, to 11,232.19.

In his second day of testifying before Congress, U.S. central bank chief Jerome Powell said the Fed's commitment to reining in 40-year-high inflation is "unconditional" but also comes with the risk of higher unemployment.

U.S. business activity slowed considerably in June as high inflation and declining consumer confidence dampened demand across the board, a survey on Thursday showed.

“The Fed wants to see things start to slow and the data is starting to reflect that,” said James Ragan, director of wealth management research at D.A. Davidson.

Citigroup (NYSE:C) analysts are forecasting a near 50% probability of a global recession.

“Economic growth is slowing. Is it going to slow enough to go into a recession, that’s the big question,” Ragan said.

Defensive groups considered safer bets in rocky economic times were the top-performing S&P 500 sectors. Among them, utilities gained 2.4%, healthcare rose 2.2% and real estate added 2%.

The heavyweight tech sector rose 1.4%, with Microsoft (NASDAQ:MSFT) gaining 2.3% and Apple (NASDAQ:AAPL) up 2.2%.

The energy sector slumped 3.8%, continuing its recent pullback after soundly outperforming the market for most of 2022. Declines in Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) were the biggest individual drags on the S&P 500, with Exxon dropping 3% and Chevron falling 3.7%.

Other economically sensitive sectors also fell. Materials lost 1.4%, while industrials and financials dipped about 0.5% each.

Advancing issues outnumbered declining ones on the NYSE by a 1.41-to-1 ratio; on Nasdaq, a 1.67-to-1 ratio favored advancers.

The S&P 500 posted one new 52-week high and 40 new lows; the Nasdaq Composite recorded 32 new highs and 194 new lows.

About 12.4 billion shares changed hands in U.S. exchanges, compared with the 12.5 billion daily average over the last 20 sessions.

Wall Street posts solid gains, as defensives, tech shine
 

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Comments (10)
Ric Later
riclater211 Jun 23, 2022 7:28PM ET
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We need a 50+ % fall across all markets and asset classes. It's coming. Housing, stocks name it. Songs boy real estate or cats or any big purchase. Everything is not fine, the economy is not strong and the Dems are losing control.
Ric Later
riclater211 Jun 23, 2022 7:25PM ET
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lol.... gains.... lol....
benjamin mani
benjamin mani Jun 23, 2022 2:49PM ET
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im happy made 200k + from sell the last weeks
Imre Zsombor Varga
Imre Zsombor Varga Jun 23, 2022 2:30PM ET
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S&P 500 8000 2023-24 GL USA
Imre Zsombor Varga
Imre Zsombor Varga Jun 23, 2022 2:29PM ET
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sp500 8000 2223 :) NICE,GL USA
lokraj pandey
lokraj pandey Jun 23, 2022 11:46AM ET
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Fake news
Dave Jones
Dave Jones Jun 23, 2022 11:36AM ET
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Recession is good for wall street?
Ric Later
riclater211 Jun 23, 2022 11:36AM ET
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100% we need a 50+ % fall across all markets and asset classes.
Kerry Ditto
Kerry Ditto Jun 23, 2022 11:22AM ET
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Powell is dovish today, so stock market has to rise. Oil price falling and bond yields falling support the dovishness.
Edward Chong
Edward Chong Jun 23, 2022 11:22AM ET
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hur u mean unconditional is dovish???
neang aee 냥에
neang aee 냥에 Jun 23, 2022 9:52AM ET
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But too near to mandatory clearing
Godswill Mafito
Godswill Mafito Jun 23, 2022 9:52AM ET
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You are right
Godswill Mafito
Godswill Mafito Jun 23, 2022 9:52AM ET
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To get all the information📲 you need to proceed your tradingVisit me now
Mitchel Pioneer
Mitchel Pioneer Jun 23, 2022 9:50AM ET
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Another credible day of "trade" in the laughingstock of the financial world, as savvy "investors" are once again coming out of the woodwork to load up on the most grossly overvalued equities in history as the purely manufactured US eCONomy heads towards recession.  A joke of epic proportions.
Ryan Lennon
Ryan Lennon Jun 23, 2022 9:50AM ET
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hahah, you must be holding some heavy bags. trade better.
Ac Tektrader
Ac Tektrader Jun 23, 2022 9:50AM ET
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mitch, have you thought about investing in a cash position; it would help take all your worries away.....
 
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