U.S. stocks close mixed as consumer sentiment stays low


  • World
  • Saturday, 15 Jun 2024

NEW YORK, June 14 (Xinhua) -- U.S. stocks ended mixed on Friday as weaker-than-expected consumer sentiment in June weighed on the market.

The Dow Jones Industrial Average fell by 57.94 points, or 0.15 percent, to 38,589.16. The S&P 500 dipped by 2.14 points, or 0.04 percent, to 5,431.6. The Nasdaq Composite Index increased by 21.32 points, or 0.12 percent, to 17,688.88, achieving its fifth consecutive record close.

Eight of the 11 primary S&P 500 sectors ended in red, with industrials and materials leading the laggards by losing 1.03 percent and 0.94 percent, respectively. Meanwhile, communication services and technology led the gainers by rising 0.56 percent and 0.51 percent, respectively.

The latest University of Michigan consumer sentiment survey released Friday showed that sentiment in June fell to its lowest level in seven months, with the preliminary index reading at 65.6, down from 69.1 in May and below the 72 economists had expected. The current conditions index dropped to 62.5 from 69.6 the previous month, contributing to the decline in June's overall sentiment.

"Assessments of personal finances dipped due to modestly rising concerns over high prices as well as weakening incomes," Survey of Consumers director Joanne Hsu said in a statement. "Overall, consumers perceive few changes in the economy from May."

Capital Economics North America economist Olivia Cross said Friday's reading indicates that households are increasingly struggling under the burden of higher interest rates and persistent consumer prices.

During a press conference on Wednesday, Federal Reserve Chair Jerome Powell acknowledged the disconnect between Americans' negative feelings about the economy and the positive economic data. He maintained that the Fed is confident inflation will return to its 2 percent target. "In the meantime, you know, it's going to be painful for people," Powell said. "But the ultimate pain would be ... a long period of high inflation."

Meanwhile, Tesla shares dropped 2 percent on Friday after shareholders reapproved CEO Elon Musk's pay package. Despite opposition from some large investors, 77 percent of votes were cast in favor, the EV maker reported. Software giant Adobe surged over 14 percent after its fiscal second-quarter results exceeded Wall Street estimates.

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