NEW YORK, June 11 - The S&P 500 closed nominally higher at the end of a very volatile week marked by few market-moving catalysts and persistent concerns over whether current inflation spikes could linger and cause the US Federal Reserve to tighten its dovish policy sooner than expected.
The Dow and Nasdaq ran for the week after the last closing Friday when the S&P made a weekly loss while the Dow posted a 4-day loss.
But the indexes have been range-bound, with few catalysts to move investor sentiment. Much of the focus was on the current inflation data, which eased jitters over the length of the consumer price wave.
Today, it's a muted day for Oliver Pursche, a senior Vice President at Wealthspire Advisors in New York. The summer is finally settling in, people are slipping out of work early and there's nothing in the news that is going to drive the market in either direction.
Investors are going to wait until the earnings season.
The Federal Reserve has repeatedly said that long-term price spikes will not meetastasize into inflation, an assertion which was announced on Friday in the University of Michigan Consumer Sentiment report which showed inflation expectations easing after last month's spike.
Investors are now turning their attention to the Fed's statement at the conclusion of the two-day monetary policy meeting next week, which will be parsed for tips on the key rate extension timetable.
Our view is that inflationary data are transient and we will be around the 2% mark for the year, Pursche added.
The U.S. Treasury yields posted their biggest monthly decline in nearly a year, weighing heavily on the interest-sensitive financial sector in recent sessions.
The Food and Drug Administration is facing mounting criticism over its accelerated approval of Biogen Inc's Alzheimer’s drug Aduhelm without strong evidence of its ability to combat the disease.
Biogen shares ended lower as part of the broader healthcare sector.
The Dow Jones Industrial Average added 14.41 points, or 0.24%, to 34,480. 65, the Nasdaq Composite added 8.29 points, or 0.35%, to 4,247. 47 and the Dow Jones Industrial Average added 49.09 points, or 0.35%, to 14,069. 42
Healthcare suffered the biggest percentage drop out of the 11 major sectors in the S&P 500.
Much of the trading volume this week was attributable to the ongoing social media-driven meme stock phenomenon in which heavily shorted investors swarm around moderate stocks.
The stock moves of AMC Entertainment were weaker on Friday, with memes outperforming them. What is the most effective way to define a given type of sentence?