In a recent interview, Fed Chair Jerome Powell said he wants to continue raising interest rates and the American consumer still looks good. Musk also called on the Securities and Exchange Commission to look into Twitter user numbers. Nevertheless, Twitter rose more than 2% and Tesla jumped more than 5%. These events all helped lift the markets, but the story did not end there. There are some bright spots on Wall Street that may cause the market to bounce back.
Dow Jones Industrial Average fell 2.1%
The Dow Jones Industrial Average plunged 2.1% on Wednesday, extending a two-day losing streak. Investors were weighed down by mixed economic data, which showed that the economy is battling COVID-19 while continuing to recover. This mixed data, coupled with a scheduled interest rate policy update from the Federal Reserve, contributed to the choppy week in the stock market. Traders and investors are focusing on the Fed’s upcoming economic update.
S&P 500 rose 2.8%
After days of mixed performance, global equity markets rose on Thursday, with the S&P 500 rising 2.8% and the Eurostoxx 50 gaining 0.9%. Investors are weighing the effects of extremely weak global preliminary PMIs, the latest round of US jobless claims, and the first EU summit result on the Economic Recovery Fund. Additionally, investors are assessing the lack of consensus on Trump’s infrastructure plan, additional aid to state governments, and another round of stimulus checks.
Nasdaq composite retreated 2.8%
Global equities fell on Wednesday as an increase in cases of coronavirus drove investors away from riskier assets. Cases in California and Texas increased by over 5,000 in one day. On Tuesday, the governor of Texas urged residents to stay home in case they become infected. As a result, stocks have fallen nearly 28% since the start of 2019.
European shares fell
Traders slashed prices across Europe on Monday, with German and French shares losing up to 1%. Concerns over rising inflation were exacerbated by weak Chinese economic data. Retail sales in April fell nearly twice as much as forecast, while industrial output slumped 2.9%. Investors are hoping that the US Federal Reserve will act soon to curb the trend. In the meantime, they’re waiting for the next round of US trade talks in June.
Commodity plays among best-positioned stocks
As inflation rises, commodity prices have followed. This increase is tied to the rise of consumer prices. And since commodities are a natural inflation hedge, they’re among the best-positioned stocks for the current market environment. Here are five commodities to consider adding to your portfolio: