Stocks retreated from record highs on Friday as risk appetite waned amid a political crisis in France and falling U.S. consumer confidence. However, stocks overcame a more hawkish stance from the Federal Reserve and ended the week with gains.
The market ended a strong week on a pessimistic note. Stocks in Europe sold off ahead of the US open after French President Emmanuel Macron's call for early elections stoked fears that his centrist, pro-business Renaissance party could lose parliamentary seats to the far-right National Rally party. or a left coalition.
In economic news in the US, a measure of consumer confidence unexpectedly fell to a seven-month low as people continued to struggle with higher prices. He University of Michigan Consumer Sentiment Index for June it decreased for the fourth consecutive month to 65.6. Economists expected the sentiment reading to rise to 72 from 69.1 a month ago.
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"High prices and weakening income opportunities caused respondents to report sour feelings about personal finances," writes Josรฉ Torres, senior economist at Interactive corridors . "Lower gasoline prices have not helped improve consumer confidence in recent months, a significant fact considering that the University of Michigan indicator of buyer mood correlates strongly with costs in the pump".
Although stocks struggled on Friday, major benchmarks ended the week with solid gains despite the central bank's decision. Rate-setting committee takes more aggressive turn On Wednesday. The Federal Open Market Committee (FOMC) concluded its two-day meeting with a forecast of just a quarter-point cut in the near term. federal funds rate before the end of the year.
As of June 14, futures traders assigned a 61% probability that the Federal Reserve would implement its first interest rate cut in September, according to the CME Group report. FedWatch Tool .
He earnings schedule Next week it is relatively light, as is the economic calendar โ leaving market participants free to react to scheduled interviews and speeches from seven different Federal Reserve officials.
ADBE Shares Rebound on Outlook
Adobe (ADBE ) had its best session in four years, jumping 14.5% after the company raised its full-year revenue forecast. The software maker first announced its foray into generative artificial intelligence (AI) a year ago, but investors have been waiting to see if Adobe's Firefly AI tools will help boost the bottom line.
"We see a decent chance that investors are currently stuck in a point of Firefly disillusionment, and our sense is that monetization could gradually start to build in the second half and next year," he wrote J.Morgan Analyst Mark Murphy, who raised his recommendation on ADBE to Overweight (the equivalent of Buy) from Neutral (Hold).
Adobe stock has lagged the market in recent years, but has been a winning choice for long-term shareholders. In fact, anyone who puts $1,000 worth of ADBE stock 20 years ago I would be very happy with the returns.
Regarding the main indices, the blue chip Dow Jones Industrial Average fell 0.2% to 38,589, while the broader group S&P 500 fell fractionally to 5,431. heavy technology Nasdaq Compound added 0.1% to 17,688.
Coming soon: the earnings schedule Next week it is relatively light, as is the economic calendar โ leaving market participants free to react or overreact to various scheduled speeches by Federal Reserve officials.
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