by Stephen Culp
NEW YORK, June 29 (Reuters) – The New York Stock Exchange ended in mixed order on Wednesday after a choppy session as investors favored caution after a month and a half. a complicated quarter, with the S&P-500 heading for its worst first half in more than fifty years.
The Dow Jones Industrial Average gained 0.27%, or 82.32 points, to 31,029.31 points.
The broader S&P-500 fell 2.72 points, or 0.07%, to 3,818.83 points.
The Nasdaq Composite fell for its part by 3.65 points (0.03%) to 11,177.89 points.
While giants Apple, Amazon and Microsoft drove Wall Street higher, economically sensitive sectors such as semiconductors and transportation underperformed.
“The market is struggling to find direction,” commented Megan Horneman, chief investment officer at Verdence Capital Advisors in Hunt Valley, Maryland.
“We had disappointing data, and the markets are waiting for the earnings season, which will bring more clarity” on future earnings and the slowing economy, she said.
While the S&P-500 is heading for its biggest first-half decline since 1970, the Nasdaq is expected to experience its worst first half.
Wall Street’s three main indexes are all expected to record a second straight quarter in the red, something that hasn’t happened since 2015.
After decades of loose monetary policy, the US Federal Reserve (Fed) has shifted to a tightening cycle, which “is new for a lot of investors,” Megan Horneman said.
Among the major S&P-500 sectors, energy declined, while health care was the best performer.
Representatives of the Fed have reiterated in recent days the determination of the US central bank to stem the surge in inflation, suggesting a further hike in interest rates of 75 basis points in July. They believe that this tightening will not plunge the economy into recession.
On the value side, Bed Bath & Beyond plunged 23.6% following the announcement of the replacement of its general manager in order to turn the group around.
Fedex fell 2.6% after reporting a disappointing profit forecast.
* TO BE FOLLOWED ON THURSDAY:
(French version Jean Terzian)