The SPX and Nasdaq Ended the Week with Record High

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Table of Content:

1.    Major indexes weekly performance 

2.    S&P 500 sector index weekly performance 

3.    Major indexes weekly chart and technical support & resistance levels

U.S.

For the week ended Jun 7, the three U.S major indexes closed higher. The S&P 500 Index(SPX) and technology-heavy Nasdaq Composite(COMP) reached record intraday highs, but the smaller-cap indexes(RUT) pulled back. Relatedly, growth stocks outpaced value shares by the widest amount since early in the year, as falling longer-term interest rates increased the notional value of future earnings. Refer to below major indexes weekly performance table.

Key highlights for the week and next:

1.    Economic data on Friday reported stronger-than-expected payroll and wage growth in May, further dampening hopes for Federal Reserve interest rate cuts this year. However, the S&P 500 still ended the week higher, its sixth weekly gain out of the past seven. Nonfarm payrolls grew by 272k last month, a sharp jump from 165k in April and well above analysts' expectations for a gain closer to 185k. 

2.    Mixed inflation signals. The unemployment rate increased, average hourly earnings rose 0.4%, above consensus and the most since January. The ISM data suggested that overall price pressures were concentrated in the much larger services sector while easing in the struggling manufacturing sector, due largely to falling commodity prices. 

3.    The focus now shifts to next week's Consumer Price Index (CPI) report and the Fed's policy meeting on June 11–12.

 

SPX sectors in play

Five out of the 11 sectors of SPX closed with gains. Growth stocks outpaced value. Some of the steam seemed to come out of the fast-growing artificial intelligence (AI) sector, however. News arrived that U.S. officials have slowed the issuing of licenses to chipmakers for AI chip sales to the Middle East and were opening antitrust investigations into Microsoft and NVIDIA over their dominance of AI. Technology(XLK) and Communication Services(XLC) were among top performers while Energy(XLE) and Utilities(XLU) lagged. Refer to below SPX sectors ETF weekly performance table.

Indexes technical levels

Both SPX and COMP rebounded and hit record high after previous week pull back.  Click below three indexes for their weekly charts.  

DJI weekly chart

SPX weekly chart

Nasdaq weekly chart

China/HK

China stocks retreated despite data showing that the property sector may be gaining traction. The Shanghai Composite Index(SSE) declined 1.15%, while the blue chip CSI 300 gave up 0.16%. In Hong Kong, the benchmark Hang Seng Index rose 1.59%. (Refer to the above weekly performance table).

Key highlights for the week and outlook for China/HK:

1.    The value of new home sales by the country’s top 100 developers rose 11.5% in May, up from April’s 3.4% increase, according to the China Real Estate Information Corp. New home sales slumped 33.6% in May from a year ago but eased from April’s 45% decline. The data boosted hopes that China’s property market downturn, now in its fourth year, may start to recover after Beijing announced a rescue package in May to stabilize the struggling sector. 

2.    The private Caixin/S&P Global survey of manufacturing activity edged up to 51.7 in May from April’s 51.4, marking its seventh monthly expansion. The Caixin services purchasing managers’ index reached an above-consensus 54 in May, rising from 52.5 in April. 

3.    China’s exports rose a better-than-expected 7.6% in May from a year earlier, up from 1.5% growth in April. Imports increased a weaker-than-expected 1.8% in May, slowing from April’s 8.4% rise. The overall trade surplus increased to USD 82.62 billion, up from USD 72.35 billion in April.

Hang Seng Index component stocks weekly return:

Click below title to view weekly charts.

SSE weekly chart

.HSI weekly chart

Singapore

STI index edged lower 0.17% for the week after three-week winning streak. The index appear still bullish, expect profit taking as it approaching major resistance level. Immediate resistance level is around 3400, immediate technical support 3300 level.

STI Index component stocks weekly return:

STI weekly chart

Source: Some contents and data excerpted from various public market reports.