The Cboe Volatility Index (VIX) logged a second-straight weekly loss
A strong jobs report for May did more harm than good on Friday, with stocks settling deep in the red after Wall Street interpreted the data as a green light for the U.S. Federal Reserve to move forward with interest rate hikes. The Dow fell 348 points, and both the S&P 500 and Nasdaq settled lower as well, as a surging 10-year Treasury yield dinged the tech sector. All three major benchmarks also logged weekly losses, while the Cboe Volatility Index (VIX) registered a second-straight losing week, despite finishing higher for the day.
Continue reading for more on today's market, including:
- The retail stock drawing mixed analyst reactions.
- Okta stock popped on strong quarterly results.
- Plus, tech ETF bottom in sight; 8 weed stocks to watch right now; and buyout bids boost KSS.
The Dow Jones Average (DJI - 32,899.70) dropped 348.6 points, or 1.1% for the day, and 0.9% for the week. Caterpillar (CAT) rose 1.3%, leading the gainers. Apple (AAPL), meanwhile, paced the laggards with a 3.9% drop.
The S&P 500 Index (SPX - 4,108.54) lost 68.3 points, or 1.6% for the day, and 1.2% for the week. Meanwhile, the Nasdaq Composite (IXIC - 12,012.73) fell 304.2 points, or 2.5% for the session, and 1% this week.
Lastly, the Cboe Market Volatility Index (VIX - 24.79) added 0.07 point, or 0.3% for the day, but lost 3.5% for the week.
5 Things to Know Today
- Cleveland Fed President Loretta Mester said there is not enough evidence inflation has peaked, and that many rate hikes will be need in the coming months. (CNBC)
- Tesla (TSLA) CEO Elon Musk reportedly said to “pause all hiring worldwide” due to his “super bad feeling” about the economy, adding a 10% job cut would be needed. (MarketWatch)
- Could this tech ETF have finally found its bottom?
- These 8 weed stocks did not slow down for Memorial Day.
- Kohl's stock enjoyed tailwinds from two fresh buyout bids.
Gold Prices Log Worst Daily Drop Since May
Oil prices closed out higher on Friday, as investors continued to brush off a decision from the Organization of the Petroleum Exporting Countries and their allies (OPEC+) to hike production. A drop in U.S. crude inventories, coupled with China's easing Covid-19 restrictions, helped black gold. In turn, July-dated crude added $2, or 1.7%, to close at $118.87 per barrel. For the week, it added 3.3%.
Meanwhile, gold prices settled sharply lower to log their worst single-day percentage drop in three weeks. Pressuring the yellow metal was a strengthening U.S. dollar and today's upbeat jobs report. As a result, August-dated gold fell 1.1%, or $21.20, to settle at $1,850.20 an ounce. The safe-haven commodity also fell 0.3% for the week -- its first weekly loss in three.