Shares were lower across the board in New York, with utilities pacing the SP 500’s losses. It appeared investors were taking profits after the recent rally, amid renewed uncertainty about future interest rate rises and the economic outlook.Tesla -3% Apple -0.2% Amazon -0.6% Alphabet -0.7%P 500’s industry sectors closed down. The VIX rose 4.1 per cent to 13.44.P 500 broke its five-week rally, its longest since November 2021.
“It has been an overbought market, and giving a little bit back,” Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky, told Reuters. “[The rally] has been momentum-driven, with fairly broad participation, and there’s nothing surprising about markets taking a pause.” The yield on the US 10-year note slid 6 basis points to 3.73 per cent in New York. Government bond yields tumbled across the Americas and Europe as recession worries spiked.
Surveys of manufacturing purchasing managers released on Friday signalled contraction across major economies, with the US index hitting its low for the year so far, Reuters reported. The euro-area equivalent for June slid more than economists anticipated, to the lowest level in more than three years.