After the roller coaster that the stock market experienced last year, due to COVID-19 and the consequences it left in the economy, it was to be expected that this year it would be moved and it has been. Vaccination programs and economic stimuli from central banks, especially the US Federal Reserve, have had convincing results.
The S&P 500, one of Wall Street’s top stock indices, hit its fifth consecutive record on Wednesday as investors ended the month and quarter ignoring positive economic data and awaiting the expected employment report on Friday.
The S&P 500, the Dow Jones and the Nasdaq posted their fifth consecutive quarterly rise, and the S&P 500 posted its second-best first-half performance since 1998, thanks to the energy, financial, real estate and communications services sectors.
For the month, the S&P 500 posted its fifth straight advance, while the Dow snapped its four-month winning streak. The Nasdaq also rose in June.
This month, investor appetite shifted away from business cycle sensitive sectors in favor of growth stocks. “The leading sectors so far this year are what you would expect,” Robert Pavlik, a portfolio manager at Dakota Wealth in Fairfield, Connecticut, told Reuters. “Energy, financial and industrial, and that speaks of an economic environment that is in the early stages of a cycle.”
“(Investors) started the shift back to growth (stocks) after people started to believe comments from (Fed Chairman Jerome) Powell that focus on transitory inflation,” added Pavlik .
The possibility of a temporary rise in inflation has pushed the benchmarks S&P 500 and Nasdaq to record highs in recent sessions, helped by advances in technology stocks.
The FAANGS quintet had a month of progress: Facebook’s share price rose 6%; from Amazon, 7%; Apple, 10%; Netflix, 5% and Google, 4%.
“The second half of the year could certainly bring an increase in volatility depending on what the Fed does about its monetary policy. Will the Fed reduce its stimulus? Will inflation accelerate?” John Brady, senior vice president of the US, told Reuters. RJ O’Brien & Associates in Chicago.
Bank of America analysts estimate that US President Joe Biden’s spending plans will raise the current tally of global fiscal and monetary stimulus over the past 15 months to $ 30.5 trillion, an amount equivalent to the economies of China. and Europe together.
The Mexican Stock Market falls
The main index of the Mexican stock market fell for the fourth consecutive day and suffered its first monthly decline since January, amid renewed concerns about the pandemic and the recovery of the global economy, due to the rapid spread of the Delta variant of COVID-19 .
The benchmark S & P / BMV IPC stock index fell 0.09% to 50,289.75 points and ended June with a 1.17% loss, ending a four-month streak of gains.
In the month, among the stations with the best performance, Grupo Cementos Chihuahua, Televisa and Coca Cola Femsa stand out, with an increase of 9.2%, 9.1% and 8.3%. While those with the greatest drops were led by Qualitas Controladora with a decrease of 14%, and Orbia and Peñoles, with a decrease of 7%.
“The main source of volatility throughout the month was speculation about the adjustments that the main central banks could make globally, in particular the Federal Reserve,” said Gabriela Siller, head of analysis at Banco Base.
In the period between April and June, the index had a return of 6.44%, in its third consecutive quarter of gains. While so far this year accumulates an advance of 14.1%.
With information from Reuters.
