Mixed Close for Major US Stock Indexes as Technology Stocks Rebound
On Thursday, the three major U.S. stock indexes closed with mixed results. The Dow Jones Industrial Average fell 0.01%, the Nasdaq Composite rose 0.95%, and the S&P 500 gained 0.37%. Large technology stocks saw a rebound, with Tesla erasing an early decline of over 4% and rising more than 2% after Morgan Stanley downgraded its rating.
International oil prices continued to fall, with WTI crude oil futures dropping 4.29% to $69.42 per barrel and Brent crude oil falling 3.97% to $74.06 per barrel.
In global news, the number of Americans filing for unemployment benefits for the first time remained unchanged at 264,000, according to data released by the US Department of Labor. The number of continuing jobless claims decreased by 13,000 to 1.759 million.
Türkiye’s central bank announced its first rate hike in over two years, raising the benchmark interest rate to 15%. The Central Bank of Turkey stated that it would further tighten monetary policy if necessary to improve the inflation outlook.
The Bank of England also raised interest rates by 50 basis points, marking its 13th consecutive hike since December 2021. The UK consumer price index remained at 8.7% year-on-year in May, failing to decline from April.
Goldman Sachs warned that the U.S. stock bull market may be unstable, estimating a 25% chance of a recession within the next 12 months. If a recession occurs, the S&P 500 is expected to fall to 3400 points, a 23% decline from current levels.
Bitcoin experienced a significant recovery, breaking through $30,000 and rising over 20% in a week. The spot bitcoin ETF reappeared, and the wave of applications suggests a potential turnaround in the cryptocurrency market.
The European Union launched its 11th round of sanctions against Russia, introducing a new mechanism to restrict the transfer of technology to suspicious third countries. The EU will penalize third countries that fail to comply with sanctions or justify a sudden
What actions did Türkiye’s central bank and the Bank of England take regarding their interest rates, and what impact might these decisions have on their respective economies
On Thursday, the major US stock indexes closed with mixed results as technology stocks rebounded. The Dow Jones Industrial Average fell by a marginal 0.01%, while the Nasdaq Composite surged by 0.95% and the S&P 500 gained 0.37%. Notably, large technology stocks like Tesla saw a significant rebound, with the company erasing an early decline of over 4% and rising more than 2% after a downgrade in its rating by Morgan Stanley.
Meanwhile, international oil prices continued to decline, with WTI crude oil futures dropping by 4.29% to reach $69.42 per barrel, and Brent crude oil falling by 3.97% to $74.06 per barrel.
In other news, the US Department of Labor reported that the number of Americans filing for unemployment benefits for the first time remained unchanged at 264,000. However, there was a decrease of 13,000 in the number of continuing jobless claims, bringing it to 1.759 million.
Türkiye’s central bank made an announcement regarding its interest rates, signaling its first rate hike in over two years. The benchmark interest rate was raised to 15%, with the Central Bank of Turkey expressing its willingness to tighten monetary policy further if necessary to improve the inflation outlook.
Similarly, the Bank of England raised interest rates by 50 basis points, marking its 13th consecutive hike since December 2021. Despite this, the UK consumer price index remained stagnant at 8.7% year-on-year in May, failing to show any decline from April.
Goldman Sachs issued a warning about the potential instability in the US stock bull market, estimating a 25% chance of a recession within the next 12 months. In the event of a recession, the S&P 500 is projected to decline to 3400 points, representing a 23% drop from its current levels.
On a positive note, Bitcoin experienced a significant recovery, surpassing the $30,000 mark and rising by over 20% in just one week. The reappearance of the spot bitcoin ETF and a wave of new applications indicate a potential turnaround in the cryptocurrency market.
In global politics, the European Union initiated its 11th round of sanctions against Russia, implementing a new mechanism to restrict the transfer of technology to suspicious third countries. Non-compliance with sanctions or the lack of a satisfactory justification will result in penalties imposed on these third countries.
This article offers a comprehensive snapshot of the global market landscape on Thursday. It covers a wide range of important factors, including stock indexes, oil prices, unemployment data, interest rate hikes, Bitcoin, EU sanctions, and AI news. With so many moving pieces, it’s crucial for investors to stay informed and analyze the implications of these factors on various sectors and economies.