Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

S&P, Nasdaq end higher as July hot streak continues

Stock Markets Jul 07, 2022 06:21PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., June 30, 2022. REUTERS/Brendan McDermid

By David French

NEW YORK (Reuters) - Wall Street benchmarks ended up on Thursday, with the S&P 500 and Nasdaq recording their fourth successive higher closes, as traders leaned in to U.S. equities after the Federal Reserve hinted at a more tempered program of interest rate hikes.

U.S. stock markets have stabilized in July after a brutal selloff in the first half against the backdrop of a surge in inflation, the Ukraine conflict and the Fed's pivot away from easy-money policy.

The S&P 500 index has closed higher in each of the first four sessions so far this month, after recording its steepest first-half percentage drop since 1970. The benchmark has not had five successive gains so far in 2022.

Minutes from the central bank's June policy meeting, where the Fed raised interest rates by three-quarters of a percentage point, showed on Wednesday a firm restatement of its intent to get prices under control.

However, Fed officials acknowledged the risk of rate increases having a "larger-than-anticipated" impact on economic growth and judged that an increase of 50 or 75 basis points would likely be appropriate at the policy meeting in July.

The less hawkish tone was echoed in comments from Fed Governor Christopher Waller on Thursday. In calling fears of a U.S. recession overblown, he advocated for a 50 basis-point hike in September.

Such sentiment was taken as a cue by some to add positions, including in high-growth stocks, which had suffered in the first half of 2022 as investors fretted over their prospects in a rising interest rate environment.

This benefited tech names big and small, with heavyweights Tesla (NASDAQ:TSLA) Inc up 5.5% and Google parent Alphabet (NASDAQ:GOOGL) Inc rising 3.7%, and Affirm Holdings Inc and Avalara (NYSE:AVLR) Inc gaining, respectively, 17.1% and 16.4%.

"It's starting to feel like real money is starting to come back," said Louis Ricci, head trader at Emles Advisors.

"There's no reason that the market cannot go down another 30%, but we think the risk is 30% to the downside but three to four times that to the upside."

Though investors widely expect the Fed to hike rates by another 75 basis points in July, expectations of peak terminal rate next year have come down significantly amid growing worries of a global economic slowdown.

Fed funds futures traders are pricing for the benchmark rate to peak at 3.44% in March. Expectations before the June meeting were that it would increase to around 4% by May. It is currently 1.58%..

Elsewhere, a report on Thursday showed the number of Americans filing new claims for unemployment benefits unexpectedly rose last week and demand for labor is slowing with layoffs surging to a 16-month high in June.

A closely watched employment report on Friday is expected to show nonfarm payrolls likely increased by 268,000 jobs last month after rising by 390,000 in May.

The Dow Jones Industrial Average rose 346.87 points, or 1.12%, to 31,384.55, the S&P 500 gained 57.54 points, or 1.50%, to 3,902.62 and the Nasdaq Composite added 259.49 points, or 2.28%, to 11,621.35.

Almost all of the S&P subsectors were higher, with the energy index's 3.5% gain making it the best performer as oil and gas companies followed the rebound in crude prices from the previous day's 12-week low.

The Philadelphia SE Semiconductor index climbed 4.5% after South Korea's Samsung Electronics (OTC:SSNLF) turned in its best second-quarter profit since 2018, driven by strong sales of memory chips.

Volume on U.S. exchanges was 10.47 billion shares, compared with the 13.08 billion average for the full session over the last 20 trading days.

The S&P 500 posted 2 new 52-week highs and 29 new lows; the Nasdaq Composite recorded 24 new highs and 57 new lows.

S&P, Nasdaq end higher as July hot streak continues
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (15)
Stacy Starner
Stacy Starner Jul 07, 2022 7:20PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This site acts like were bteaking records settle down as long as jack *****is in office will always be in a recession
Steve Pate
Steve Pate Jul 07, 2022 5:08PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
What until the earnings revisions
Otb Investor
Otb Investor Jul 07, 2022 2:37PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
No mention of the mess Brandon has made. The Authors' bias is obvious.
First Last
First Last Jul 07, 2022 2:37PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Bias is blaming everything on Biden.  And the authors are adults who don't  engage in childish name-callings.
Andulnaser Alnasri
Andulnaser Alnasri Jul 07, 2022 1:29PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Is DJ30 will soar up again tonight?
Mohammed Ali
Mohammed Ali Jul 07, 2022 1:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
all say recession is coming and market moves upwards.Defies logic and common sense economically and financially 🙏🙏🙏
Andulnaser Alnasri
Andulnaser Alnasri Jul 07, 2022 1:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Is DJ30 will soar up again tonight?
First Last
First Last Jul 07, 2022 1:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
But they don't all say that.  And even in a bear market, the market can move up for a day (or week) or so.
Jeremy Francis
Jeremy Francis Jul 07, 2022 1:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The economy and the markets are not the same thing.
First Last
First Last Jul 07, 2022 1:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Common sense tells us if the market went down to much too quickly, expect an upturn.
Bulls MakeMore
Bulls MakeMore Jul 07, 2022 1:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The recession's been priced in already, that's why the market has tanked...don't forget the market is a forward-looking instrument, usually looking ahead about 6 months into the future.
Mohammed Ali
Mohammed Ali Jul 07, 2022 1:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
all say recession is coming and market moves upwards.Defies logic and common sense economically and financially 🙏🙏🙏
Dave Jones
Dave Jones Jul 07, 2022 1:02PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
wall street rises because vanguard wants it to.
Andrew Sim
Andrew Sim Jul 07, 2022 1:02PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
ccp and bankies control vanguard in turn control blackrock
Jeremy Francis
Jeremy Francis Jul 07, 2022 1:02PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Wall street rises because investers see higher potential for future earnings
Dave Jones
Dave Jones Jul 07, 2022 1:02PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Jeremy Francis investors = vanguard
Dave Jones
Dave Jones Jul 07, 2022 1:02PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
if you don't believe me look at the managed funds page on this app
de hl
de hl Jul 07, 2022 12:47PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
wall street rises because it's a fake and corrupt market. nothing has changed over the last two weeks, nothing
Mike Chang
Mike Chang Jul 07, 2022 12:45PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The disgusting KD reveals that the "MARKET" is in some people's control and make all news good news. LoL. Forget the inflation, recession, unemployment rate and celebrate for the stock price!
Mike Chang
Mike Chang Jul 07, 2022 12:44PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The disgusting KD reveals that the "MARKET" is in some people's control and make all news good news. LoL. Forget the inflation, recession, unemployment rate and celebrate for the stock price!
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email