Market Recap for Week Ended June 8:
U.S. stocks finally managed to sustain positive momentum after alternating between small gains and losses over the preceding three weeks. Consumer discretionary stocks led the broader market higher as the Dow climbed nearly 3% and the S&P 500 and NASDAQ rose more than 1
Although stocks have made some big daily moves in recent months, investors’ expectations of near-term volatility have decreased markedly, as measured by the Cboe Volatility Index. As of Friday’s close, the VIX had fallen about 50% from its level of March 23, a recent high point, and 67% below its level of February 5.
On the heels of reports showing economic growth remains on solid footing, the U.S. Federal Reserve Board is widely expected to approve another increase in short-term interest rates when it concludes a two-day meeting on Wednesday. If the Fed lifts, it would be the third rate hike in six months and the second this year.
Loss of traction
Crude oil prices haven’t been able to sustain the $70-per-barrel level that they breached a month ago, when oil climbed to its highest level in three and a half years. Prices fell for the third week in a row, settling around $66 per barrel.
Although information technology stocks lagged the broad market overall in the latest week, the sector has been a standout performer year to date. Wednesday marked the third day in a row that the NASDAQ closed at a record high, and the tech-oriented index is outperforming the S&P 500 and Dow by wide margins this year.
Source: John Hancock Investments