Daily market review

United States

Equities bounced back Friday, with growth and megacaps leading to the upside, on the view that equities were oversold. The Dow Jones industrial average rose 1.5 percent, the S&P 500 gained 2.4 percent, and the NASDAQ was up 3.8 percent.

Gains were across the board, with a boost from short covering after many stocks found support at the recent lows on Thursday afternoon. Reports suggesting Shanghai may be nearing an end to its lockdowns boosted risk appetite too.

Despite Friday's gain, the S&P closed down for a sixth straight week, a remarkably long run to the downside. Many analysts believe the selloff has not yet been dramatic enough to set the stage for a sustained rally.

Information technology and consumer discretionary shares outperformed as the market rebounded, just as they lagged during recent declines. Energy stocks advanced with oil prices extending their gains.

Among companies in focus, Twitter lost 9.7 percent after Elon Musk put his proposed acquisition on hold, while Tesla rose 5.7 percent to boost consumer discretionary stocks on the view that Musk is less likely to sell Tesla stock to buy Twitter.

Among other winners, Robinhood Markets rallied 25 percent after investor Sam Bankman-Fried disclosed he had taken a big stake in the online broker. Ford rose 8.5 percent after an upgrade at Morgan Stanley. Occidental Petroleum gained 8.2 percent on news Berkshire Hathaway had raised its stake.

These price data reflect observations at 4:00 PM US ET: Dated Brent spot crude oil rose US$3.31 to US$111.44 while spot gold fell US$14.06 to US$1,808.59. The US dollar was mixed vs. major currencies. The US Treasury 30-year bond yield rose 7 basis points at 3.10 percent and the 10-year note yield rose 6 basis points to 2.93 percent.


Equities bounced Friday as global markets attracted dip-buying. The Europe-wide STOXX gained 2.1 percent, the French CAC rose 2.5 percent, the German DAX rose 2.1 percent and the FTSE 100 was up 2.6 percent.

For the week, investors have noted first quarter European earnings so far have been mostly positive though many companies are warning the second half may see weaker results. On the interest rate front, European Central Bank officials have been signaling their readiness to start raising interest rates in July.

Among sectors, technology, banks, and travel & leisure outperformed while defensive sectors lagged. Rising oil prices lifted energy shares. Technology got a boost starting late Thursday after Federal Reserve Chair Jerome Powell repeated his preference for 50 basis point rate increases, as opposed to 75. Banks drew support from expectations for European Central Bank rate increases.

Basic resources lagged as investors continue to see Chinese industrial demand slowing in light of Covid disruptions. Utilities came under pressure with Vestas Wind System off 4.4 percent after a downgrade at Berenberg.

Asia Pacific

Asian equities rebounded Friday on bargain hunting with a boost from Thursday's late recovery on Wall Street.

Late gains for US tech and other growth stocks and positive Japanese company earnings lifted Japanese equities, with the Nikkei 225 up 2.6 percent and the TOPIX up 1.9 percent. Among the day's best, Softbank jumped 12.2 percent despite setting records for losses on falling tech valuations.

Chinese markets tracked US markets higher. China's CSI 300 index gained 0.8 percent and the Shanghai index rose 1.0 percent. Hong Kong's Hang Seng jumped 2.7 percent with internet and tech stocks leading. Rumors of pending lockdowns in Beijing, which were denied by authorities, hurt risk appetite, along with much weaker than expected growth in Chinese new yuan loans.

Taiwan's Taiex rose 1.4 percent and South Korea's KOSPI rose 2.1 percent with tech stocks best. Indian equities underperformed on weak economic data and earnings with the BSE Sensex down 0.3 percent.

Australia's All Ordinaries index rallied 2.0 percent amid bargain hunting and regional gains. Technology, real estate investment trusts, health care, and energy shares outperformed.

Global Stock Market Recap

Global Bond Market Recap

Global Currency Recap

Commodities and currencies

Looking forward