top of page

Wealth Daily 26 May 2022

WEALTH DAILY 2022-05-26
Download PDF • 199KB

US equities rose on Wed, after the Fed’s minutes from its most recent meeting revealed little change in the projected path of monetary policy from what its members had previously communicated. 

The Dow Jones Industrial Average gained 191.66 pts or 0.6% to close at 32120.28. The broader S&P 500 index rose 0.95%. The tech-heavy Nasdaq Composite advanced 1.51%. The small cap Russell 2000 gained 1.95%. 

The CBOE Volatility Index (VIX) declined by 1.08 pts to close at 28.37 on Wed as investor fear waned after the minutes left markets unroiled. 

Megacap tech stocks rose on Wed, including Apple (APPL US, +0.11%), Microsoft (MSFT US, +1.12%), Amazon (AMZN US, +2.57%), Nvidia (NVDA US, +5.08%), and Meta Platforms (FB US, +1.41%). One exception was Alphabet (GOOGL US, -0.16%). 

After the market closed, Nvidia (NVDA US, +5.08%) gave a weak forecast due to Chinese supply-chain woes and the war in Ukraine. The stock fell 6.85% in after-hours trade on Wed. 

Elon Musk is boosting the equity component of his $44b Twitter (TWTR US, +3.91%) bid by $6.25b, dropping plans to partly fund it with a similar-size margin loan tied to his Tesla (TSLA US, +4.88%) stake. 

The yield on the 10-year Treasury note slipped 0.54 basis points (bps) to 2.7452%, while the yield on the 2-year Treasuries, which are more sensitive to imminent policy moves, rose 1.33 bps to 2.4919%. 

The iShares iBoxx High Yield Corporate Bond ETF (HYG US) rose 1.52%.  The front-month Brent and WTI futures closed up 47 cents at US$114.03/bbl and 56 cents at US$110.33/bbl respectively. 

The ICE dollar index (DXY), which measures the strength of the greenback against a basket of currencies, fell 0.20% to 102.056.  T

he most actively traded US gold futures (Jun) contracts settled down $19.10, or 1.02%, at US$1846.3oz. July silver, which is the most actively traded silver futures, fell $0.19, or 0.88%, to end at US$21.87/oz. 

European equity markets finished higher on Wed. The UK FTSE gained 0.51%, France's CAC 40 rose 0.73%, while the German DAX advanced 0.63%. 

Marks & Spencer (MKS LN, +4.8%) reversed an earlier decline on Wed after the UK retailer reported results and highlighted cost pressures and consumer uncertainty in its outlook for the year ahead.