US Stock Market Overview – Stocks Rebound but Finish Lower for the Week

US stocks moved higher on Friday rebounding from Thursday’s route. The VIX, which measures the “at the money” strike price implied volatility on the S&P 500 index eased after rallying 50% on Thursday. Most sectors in the S&P 500 index were higher, led by energy, consumer staples were the worst-performing sector in an up tape. For the week, all three major indices were underwater. This was the worst week for the S&P 500 index is 3-months. On Thursday stock prices were hammered, with the Dow losing nearly 7%. Many believe this was just froth that was taken out of the market.

US import prices came in stronger than expected, which makes two of the three inflation indices released during the week showing a stronger than the anticipated number. US consumer sentiment came out at 78.9 compared to expectations of 75. Future expectations of economic growth also increased. US treasury yields continue to remain under pressure printing a reading of 70-basis points.

A New Shutdown Has Some Concerned

Some of the issues related to the market whipsaw price action are the increase in the spread of COVID cases during the past 4-weeks. The post-Memorial Day outbreaks in states come roughly a month after stay-at-home orders were lifted. Experts urged people to continue to take the virus seriously and not take increased freedom as permission to stop wearing masks or resume gathering in large groups. But this has fallen on deaf ears. Pent up demand for social interaction has the virus spreading throughout the south and southwest.

US Import Price Rise More than Expected

The US Labor Department reported that import prices rebounded more than expected in May. Import prices rose 1.0% last month after an unrevised 2.6% drop in April. Expectations had been for import prices, which exclude tariffs, to increase by 0.6% in May.