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Stocks gain sharply for day and week, while copper falls further

Stock Markets Jun 24, 2022 08:42PM ET
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2/2 © Reuters. FILE PHOTO: Men wearing protective masks amid the coronavirus disease (COVID-19) outbreak, use mobile phones in front of an electronic board displaying Japan's Nikkei index outside a brokerage in Tokyo, Japan June 16, 2022. REUTERS/Kim Kyung-Hoon 2/2

By Caroline Valetkevitch

NEW YORK (Reuters) - Stocks on global markets rallied on Friday and registered strong gains for the week as a recent slide in commodity prices eased worries about inflation and the rate hike outlook.

The S&P 500 climbed 3.1% in its biggest daily percentage gain since May 2020, and the MSCI global index rose 4.8% for the week, snapping three straight weeks of declines.

U.S. Treasury yields edged up from two-week lows.

Investors have been worried that aggressive interest rate hikes by the Federal Reserve and other major central banks to combat inflation could cause a recession, which would reduce demand for commodities and other items.

"The (stock) market came into this week oversold, so it was time for a bounce," said Quincy Krosby, chief equity strategist at LPL Financial (NASDAQ:LPLA) in Charlotte, North Carolina.

"We've seen oil prices come down along with other commodity prices," she said, adding that the market's move is reflecting "expectations of at least a marked slowdown if not an out-and-out recession."

Also, the University of Michigan consumer sentiment survey's reading on five-year inflation expectations was positive for stocks, Krosby said. It eased to 3.1 from the preliminary 3.3% estimate in mid-June.

The benchmark S&P 500 last week confirmed a bear market.

The Dow Jones Industrial Average rose 823.32 points, or 2.68%, to 31,500.68, the S&P 500 gained 116.01 points, or 3.06%, to 3,911.74 and the Nasdaq Composite added 375.43 points, or 3.34%, to 11,607.62.

For the week, the S&P 500 rose 6.4%, the Dow added 5.4% and the Nasdaq gained 7.5%.

The pan-European STOXX 600 index rose 2.62% and MSCI's gauge of stocks across the globe gained 2.63%.

Benchmark copper on the London Metal Exchange was 0.5% lower at $8,367 a tonne after touching $8,122.50, down 25% from a peak in March and the lowest level since February 2021. Other industrial metals also tumbled.

Oil prices were higher Friday on but notched their second weekly decline.

On the day, Brent crude settled up $3.07, or 2.8%, at $113.12 a barrel, while U.S. West Texas Intermediate crude settled up $3.35, or 3.2%, at $107.62.

In the Treasury market, yields have dropped from more than decade highs reached before last week's Fed meeting. The U.S. central bank hiked rates by 75 basis points at the meeting.

Fed funds futures traders are now pricing for the benchmark rate to rise to about 3.5% by March, down from expectations last week that it would increase to around 4%.

Benchmark 10-year yields were last at 3.125%. They have fallen from 3.498% on June 14, the highest since April 2011.

In the foreign exchange market, the U.S. dollar fell and posted its first weekly decline this month.

In afternoon New York trading, the dollar index, which measures the U.S. unit against six major currencies, fell 0.2% to 104.013.

The U.S. dollar's slide boosted even commodity-focused currencies such as the Australian dollar and Norwegian crown. The Aussie rose 0.8% to US$0.6946.

Spot gold added 0.2% to $1,826.39 an ounce

Stocks gain sharply for day and week, while copper falls further
 

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Comments (10)
felus lato
felus lato Jun 25, 2022 3:20AM ET
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I will start 1 week early
Jay Garrelts
Jay Garrelts Jun 25, 2022 12:45AM ET
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I have like all this cash millions and I wanna buy bitcoin if only I could find someone to help me
Kerry Ditto
Kerry Ditto Jun 25, 2022 12:43AM ET
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one week wonder is over. no FED money, no honey rally.
Iam Suleman
YesomiteSam Jun 24, 2022 6:11PM ET
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We live in strange times. Bad news that used to be bad for stocks is now good for stocks. Let's have some more bad news next week like dismal June job report etc.
Dave Jones
Dave Jones Jun 24, 2022 1:38PM ET
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Stocks rally as stocks rally due to rallying stocks.
Nils Hullmann
Nils Hullmann Jun 24, 2022 12:39PM ET
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world celebrating the defeat  of ukraine...thats why everything is green...capitulation incoming
Martijn WN
Speculeerbeer Jun 24, 2022 7:24AM ET
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This is just the pump before the next dump. Not falling for it. I'll keep some gun powder for when the next panic sale hits.
David Beckham
David Beckham Jun 24, 2022 1:20AM ET
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Good now commodity drop ( still expensive) so we are out of wood and inflation in done
James Victorino
James Victorino Jun 24, 2022 12:06AM ET
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Commodities were crashing along with yields because those markets are anticipating a recession in the near future. Those markets were essentially reacting to today's Manufacturing PMI which showed a steep drop last month. It is getting close to dropping below 50, which means contraction.
James Victorino
James Victorino Jun 24, 2022 12:06AM ET
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because a lot of people are oblivious to the significance of today's Manufacturing PMI, they are likely to find out the hard way this upcoming Wednesday when GDP is reported. derp, derp
Anony Mous
Anony Mous Jun 23, 2022 11:27PM ET
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Do you get paid for writing stupid headlines?
 
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