Stocks Close Mixed, Fed Hold Rates Steady, Hopes for De-escalation in Middle East

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Main Content:

1.    Major indexes weekly performance 

2.    U.S stocks weekly wrap 

3.    S&P 500 sector index weekly/month performance 

4.    China/Hong Kong stocks weekly wrap 

5.    Singapore stocks weekly wrap 

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

U.S.

For the week of Jun 20, U.S. stocks finished the holiday-shortened week narrowly mixed, fluctuating throughout the week amid a slew of headlines regarding escalating tensions in the Middle East. Smaller-cap indexes performed best for the week, followed by the Nasdaq Composite(COMP), which posted modest gains. The Dow Jones Industrial Average(DJI) was relatively flat, while the S&P 500 Index(SPX) finished modestly lower. Refer to below major indexes weekly performance tables.

Key highlights for the week and next:

1.    The Fed held interest rates steady at current level of 4.25% to 4.5%, as was widely expected. This marked the 4^th consecutive meeting to maintaining its benchmark rate unchanged. Notes uncertainty “has diminished but remains elevated” 

2.    Retail sales decline, hosing starts hit five-year low. Tuesday’s report showed that retail sales fell for 2^nd consecutive month, declining 0.9% after April’s drop of 0.1%. House starts data from NAHB was 32 in June, down two points from May. 

3.    Israel- Iran war continues, with crude oil settled down on Friday(Jun 20), as Trump said he might take two weeks to decide US involvement in the Israel-Iran conflict. Brent crude futures settled down US$1.84, or 2.33 per cent, to US$77.01 a barrel.

SPX sectors in play

Five out of 11 SPX sectors recorded weekly gains, Energy(XLE) was the top gainer for 2^nd consecutive week, attributed to the geopolitical tension in the Middle East. Financials(XLF), Tech(XLK) and Communication Services(XLC) were among top gainers too. Healthcare(XLV) lagged. Refer to below SPX sectors ETF weekly performance table.

Indexes technical levels

The indexes largely remain in the toppish sideway consolidation mode with little changes. Click below three indexes for their weekly charts.

DJI weekly chart

SPX weekly chart

Nasdaq weekly chart

China/HK

Mainland China stock markets retreated as investors turned their attention to the economy after a batch of mixed data. The Shanghai Composite Index(SSE) shed 0.51% and the blue-chip CSI 300 declined 0.45%. In Hong Kong, the benchmark Hang Seng Index was down 1.52%. (refer to the above weekly performance table).

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

1.    A trio of indicators showed that China’s economy was on track to record solid growth for the second quarter. Retail sales rose 6.4% in May from a year ago, the fastest pace since December 2023, according to the country’s statistics office. However, industrial output in May and fixed-asset investment year-to-date both increased less than economists’ forecasts. Moreover, analysts noted that May’s retail sales surge was likely due to temporary tailwinds, including a government sponsored trade-in program for appliances and other consumer goods aimed at bolstering consumption. 

2.    Earlier in the week, a report underscored the continued weakness in China’s property market. New home prices in 70 cities fell 0.22% in May from April, the biggest month-on-month drop in seven months, while used home prices fell 0.5%, the steepest decline in eight months, Bloomberg reported, citing official data. Ending a prolonged housing-driven slowdown is a key challenge for China’s leaders, who are trying to bolster domestic consumption longer term to insulate the economy from higher U.S. tariffs. However, the data suggested that the impact of a stimulus program that Beijing rolled out last September to support the country’s moribund property market was wearing off. 

Refer to below .HSI stocks top 40 performance of the week.

Click below SSE and .HSI indexes for their weekly charts. 

SSE weekly chart

.HSI weekly chart

Singapore

The Straits Times Index (STI) was down 0.72% to close at 3883.43 point this week. The index recorded its 2^nd consecutive weekly loss but largely remained within its past six-week sideway consolidation range. Top weekly gains were REITs such as MLT FCT and CICT, Keppel corp was another top gainers as well.

Refer to below table for STI index stocks weekly performance.

Click below for STI weekly chart.

STI weekly chart

Source: Some contents and data excerpted from various public market reports. Please comment to claim copyright ownership of any material, and I will remove it if necessary.