- The week had S&P 500 gaining 6.58%, Dow Jones 6.24%, while NASDAQ surged 6.84%.
- Data suggested slowed growth in the primary inflation gauge.
- The United States will announce monthly job data on Friday.
The three primary Wall Street indexes flourished within the past week as stats confirmed slowed growth in the primary inflation gauge. Moreover, market players ignored geopolitical tension plus monetary tightening concerns by Fed Reserve.
The three top US stock indexes experienced the longest weekly plunging streak in decades due to increasing optimism that Fed will stiffen fiscal policy without triggering recessions. Meanwhile, data published on Friday highlighted impressive consumer spending, whereas price growth per month presented a swift deceleration from 0.9% to 0.2%, plus a less intensified drop yearly from 6.6% to 6.3%.
On the other hand, Bill Adams of Comerica Bank stated rising prices might remain a challenge for the United States economy throughout 2022. Adams said that it might be early to cheer the slowing inflation. He added that food and gas prices maintained upticks in May, and the economy might witness further supply-side shocks amidst escalated Russia-Ukraine conflicts plus China’s lockdowns.
The Ukraine – Russia conflict causes supply chain problems for most companies. Moreover, commodities and raw materials prices have hiked, amplifying the already-high inflation. This week will be active as the United States will publish May’s employment data, a vital indicator for the US economy.
S & P 500 Gains 6.58 in a Week
The week saw S & P 500 surging 6.58%, closing at 4158 points. The stock hovers in the green (after an eight-week struggle), with the immediate resistance standing at 4200 points. On the other hand, the support level stood at 4000pts. Declines beneath this area will reveal a sell sign and clear the patch to 3800 points.
DJIA Gains 6.24% in a Week
Dow Jones gained 6.24% to close the week at 33,212pts. A crucial resistance stands near 34,000 pts, and upticks beyond the zone will push to 34,500 pts. Nevertheless, declining beneath 32,000 will present a massive sell sign, revealing 31,500 as the next target.
NASDAQ Composite Surged 6.84%
NASDAQ Composite (COMP) gained 6.84% to close the week near 12,681 pts. Stable support stands near 12,000, and weakness here will welcome plummets to 11,500 pts.
Nasdaq, the S & P 500, and Dow Jones flourished last week due to optimism that Fe will stiffen monetary policy without welcoming recession. The United States will announce monthly employment data on Friday, and market players will concentrate on Fed’s comments to identify potential cues.