Introduction:
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- The S&P 500 rallied 2.5% Friday to close at 4,158. With the recent gains, the index is now down 12.8% year to date.
- The index recuperated all of the month-to-date losses after recording the best week since November 2020 with Consumer Discretionary, Energy, Information Technology, and Financials leading the rebound.
- For the first time in seven weeks, US equities closed the week higher: the S&P 500 gained 6.6%, the Nasdaq 100 increased 7.1%, and the Russell 2000 improved 6.5% since last Friday's 4pm close. Markets may be experiencing a bit of a relief rally coming off of short-term oversold conditions and following first quarter earnings releases. Additionally, today's headline PCE inflation data release of 6.3% year over year inflation came in-line with expectations but remains well ahead of the Federal Open Market Committee (FOMC)'s target.
- Each of the 11 S&P 500 sectors was higher in the session, with Consumer Discretionary (+3.5%), Information Technology (+3.4%), and Real Estate (+2.8%) outperforming the broad market while Utilities (+1.5%) and Consumer Staples (+1.1%) lagged.
- As of the 4pm equity market close, the 10-year Treasury yield was flat at 2.74% and WTI oil prices rose to $115 per barrel.