Weekly Market Update - May 24, 2013
Domestic stock prices took a breather this week. Suggestions by Fed Chairman Ben Bernanke indicating the central bank may scale back its bond purchases later this year if the economy continues to improve caused investors to book some profits. Stock prices also reacted to data showing China’s manufacturing sector declined for the first time in seven months. Global markets suffered more severe losses this week than the U.S. World equity markets reacted more harshly to the news emanating from China. Japan’s market plunged 6.9% on Thursday, its biggest one-day loss since the 2011 earthquake. European stocks also declined on China concerns and worries about a scaling back of central bank stimulus.
Treasury prices were sharply lower this week. The yield on the benchmark 10-year U.S. Treasury surged this week, as Bernanke’s testimony to Congress suggested the Fed is considering exit strategies from its bond-buying program.
Commodity indices were mixed on the week. Crude oil and industrial metals dropped on fears of a slowdown in China, while gold rallied as investors sought a safe haven. Grains also rallied due to strong demand from regions in Asia.
| MARKET DASHBOARD | ||||
| Index |
Price |
Weekly Chg. |
% Chg. |
YTD % Chg. |
| S&P 500 |
1,645.42 |
-23.04 |
-1.38% |
15.3% |
| Dow Industrials |
15,303.10 |
-100.98 |
-0.66% |
16.4% |
| Nasdaq Composite |
3,459.14 |
-52.59 |
-1.50% |
14.1% |
| Russell 2000 |
984.27 |
-16.34 |
-1.64% |
15.4% |
| Euro Stoxx Index |
303.35 |
-5.37 |
-1.74% |
8.5% |
| Shanghai Composite |
2,288.53 |
5.66 |
0.25% |
0.9% |
| 10-Year U.S. Treasury |
2.01 |
6 bps |
NM |
3 bps |
| DJ UBS Commodity Index |
131.98 |
0.17 |
0.13% |
-5.2% |
| Gold |
$1,384.15 |
$28.17 |
2.07% |
-17.2% |
| Crude Oil |
$93.97 |
-$2.52 |
-2.62% |
0.1% |
| U.S. Dollar Index |
83.61 |
-0.58 |
-0.68% |
4.9% |
| VIX Index |
14.33 |
2.11 |
16.95% |
-19.2% |
| Source: Bloomberg | ||||
| As of May 24, 2013 | ||||