June 7, 2023

Great Indian Mutiny

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Growth stocks drag the Nasdaq down, energy stocks rebound

Growth stocks drag the Nasdaq down, energy stocks rebound

A trader works at the New York Stock Exchange (NYSE) in New York City, US, June 22, 2022. REUTERS/Brendan McDermid

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  • Energy S&P 500 stocks are among some gainers
  • Robinhood rises when Goldman Sachs is upgraded
  • The Dow is flat, the S&P is up 0.25%, and the Nasdaq is down 0.34%.

(Reuters) – The Nasdaq Composite Index fell by midday on Monday, dragged down by high-growth stocks, as last week’s rally lost ground as inflation concerns eased while the recovery in oil prices boosted energy stocks.

“We had a good rally last week, so I think we’re seeing a bit of profit taking this morning,” said Dennis Dick, proprietary trader at Bright Trading LLC in Las Vegas.

“The stocks that rose the most last week are the worst hit here today.”

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Nasdaq High-Tech Composite (nineteenth) The index rose 7.5% last week, and fell by 0.3%, which is the only loser among the three major indices.

Investors have been betting on a decline in oil prices from three-month highs hit in June to ease inflationary pressures and likely push the US Federal Reserve to ease its aggressive policy tightening.

Data on Monday showed that new orders for US-made capital goods and shipments rose strongly in May, indicating continued strength in business spending on equipment in the second quarter. Read more

Oil prices are also back in positive territory, sending the S&P 500 energy index up (.SPNY) By 2.5%, it curbed expectations of lower inflation on the back of lower energy prices.

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The US central bank quickly raised interest rates to tame 40-year high inflation, raising fears that its actions could push the world’s largest economy into recession.

S&P 500 . Standard (.SPX) Earlier this month, the index posted a 20% drop from its January closing peak to confirm a bear market.

For the quarter, the Standard & Poor’s 500 and Dow Jones Industrial (.DJI) It was heading for its second consecutive quarterly declines for the first time since the second and third quarters of 2015.

“We think they hit their lowest level during the quarter,” said Jay Hatfield, chief investment officer at Infrastructure Capital Management in New York.

June is usually a weak month because what happens is there are very few earnings reports. So we think we hit the lows during the month of June. “

At 12:15 p.m. EDT, the Dow Jones Industrial Average (.DJI) The S&P 500 Index rose 16.97 points, or 0.05%, to 31,517.65 points (.SPX) The index rose 9.75 points, or 0.25%, to 3,921.49 points, and the Nasdaq Composite Index (nineteenth) It was down 39.09 points, or 0.34%, to 11,568.53 points.

Shares of Robinhood Markets Inc. (HOOD.O) It rose 3.3% after Goldman Sachs raised the retail broker’s stock to “neutral” from “sell”.

However, Goldman Sachs lowered its rating on Coinbase Global Inc (COIN.O) to “sell” from “buy,” which caused the shares of the cryptocurrency exchange to drop by 8.7%.

Advance issues outnumbered losers by 1.69 to 1 on the New York Stock Exchange and by 1.08 to 1 on the Nasdaq.

The S&P recorded a new 52-week high and 29 new lows, while the Nasdaq recorded 21 new highs and 59 new lows.

Additional reporting by Shriyashi Sanyal and Amruta Khandekar in Bengaluru; Editing by Vinay Dwivedi and Shunak Dasgupta

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