Stocks Ease, Tech Rises, Bonds Eye Strongest Week Of The Year As Consumer Sentiment Sinks In June: What's Driving Markets Friday?

Wall Street is set for a subdued session on Friday as risk sentiment wanes due to low U.S. consumer confidence and rising political uncertainties in Europe.

The University of Michigan reported the lowest U.S. consumer confidence reading since November 2023, significantly missing economists’ forecasts.

European assets experienced wild sell-offs, particularly in French equities, as investors worry about potential political and fiscal turmoil with snap elections looming in nearly two weeks.

At midday trading in New York:

• The S&P 500 dipped 0.2%, pulling back slightly from a record-high close on Thursday.
• The Nasdaq 100 edged up 0.1% to over 19,600 points, aiming for its fifth consecutive record close this week.
• Both the S&P 500 and Nasdaq 100 are on track for a positive weekly finish.
• The Dow Jones Industrial Average declined by 0.2% on Friday and 0.6% for the week.
• Small-cap stocks, represented by the iShares Russell 2000 ETF IWM, underperformed large-cap counterparts, dropping 1.7% in their worst session since late April.

Bonds

Bond yields saw their largest weekly drop since late December 2023, with the 10-year benchmark yield falling over 20 basis points this week. This led to a rally in fixed-income assets, with the iShares 20+ Year Treasury Bond ETF TLT gaining 0.6% on Friday and over 3% for the week.

The latter could mark the strongest week for long-dated Treasury bonds year to date.

Commodities performed well, with gold and crude oil prices rising by 1.2% and 1.1%, respectively. Bitcoin BTC/USD fell 2.2% for the day and 6% for the week, marking its second consecutive session decline and worst week since August 2023.

Chart of The Week: Bonds Set For Best Week In Six Months

Friday’s Performance In Major US Indices, ETFs

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust SPY was 0.1% lower to $541.88.
• The SPDR Dow Jones Industrial Average DIA was 0.1% lower to $386.39.
• The tech-heavy Invesco QQQ Trust (ARCA: QQQ) was 0.3% higher to $477.88.
• Sector-wise, the Technology Select Sector SPDR Fund XLK outperformed, up by 0.2%, while the Industrials Select Sector SPDR Fund XLI lagged, down 1.3%.

Friday’s Stock Movers

• Cruise stocks fell substantially after Bank of America warned about softer pricing heading into the summer. Shares of Royal Caribbean Cruise Ltd. RCL, Carnival Cruise Corp. CCL and Norwegian Cruise Holdings Ltd. NCLH fell 5.4%, 7.8% and 7.8%, respectively.
• Adobe Inc. ADBE rose over 14%, amid stronger-than-expected results last quarter, eyeing the strongest session since March 2020.
• RH RH fell over 17% following a sharp earnings miss.
• Hasbro Inc. HAS rose 4.9% after Bank of America upgraded the company to ‘Buy’ and raised its price target from $70 to $80.

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