Today is Friday 6.23.2023. The stock market closed lower this week, as investors weighed the impact of the Federal Reserve’s latest policy decision and the outlook for the global economy. The Dow Jones Industrial Average fell 0.65% to 33,727.43, while the S&P 500 dropped 0.77% to 4,348.33 and the Nasdaq Composite slid 1.01% to 13,492.52.
The Fed announced on Wednesday that it would keep its benchmark interest rate near zero and continue its bond-buying program, but signaled that it expects to raise rates twice by the end of 2023, sooner than previously anticipated. The central bank also upgraded its inflation and growth forecasts for this year and next, reflecting the rapid recovery from the pandemic-induced recession.
The Fed’s hawkish stance rattled some investors who fear that higher interest rates could dampen consumer spending, corporate profits and stock valuations. However, some analysts argued that the Fed’s move was a positive sign of confidence in the economy and that it would help prevent overheating and financial instability.
The macroeconomic environment also remained mixed, as new data showed that U.S. jobless claims rose unexpectedly last week, while existing home sales fell for the fourth straight month in May due to low inventory and high prices. On the other hand, U.S. manufacturing activity expanded at a record pace in June, while consumer sentiment improved slightly from May.
Among the top performers in the stock market this week were Nike, which soared 15% on Friday after reporting better-than-expected earnings and revenue for its fiscal fourth quarter, boosted by strong online sales and demand in North America and China. Another winner was Dexcom, which jumped 11% on Friday after raising its revenue guidance for 2025 and announcing a new continuous glucose monitoring device for people with diabetes.
Among the losers were Intel, which fell 6% for the week, as it faced increasing competition from rivals such as Nvidia and AMD in the chip market. Another laggard was Carnival, which dropped 5% for the week, as it reported a wider-than-expected loss for its fiscal second quarter and warned of uncertainty over the resumption of cruise operations amid the pandemic.
The outlook for the stock market remains uncertain, as investors face several risks and opportunities in the coming months.
