Market Roundup: Markets Couldn’t Rebound Enough From Rough Start

Published: May 22, 2019, 2:42 p.m.

The major indices started the week closing in red territory as the Dow Jones Industrial Average and the S&P 500 Index experienced their worst day since the beginning of the year. Nearly all sectors lost ground, with distinct losses in the Technology and Industrial sectors, as these companies conduct a fair amount of business with China and are sensitive to changing sentiment. The following day sentiment shifted again, causing the markets to trend upward for most of the day. The Technology sector rebounded from several days of downward trading. Midweek, indices closed in the green zone with brands rebounding amid word of a delay on auto tariffs. In economic news, Mortgage applications increased for the week of May 3, while retail sales declined 0.2% in April. Industrial production also fell 0.5% in April, its third decrease in the last four months. Gains continued into Thursday, as Materials stocks showed strong performance while Utilities were among the weakest, on a relative basis. Indices closed in red territory on Friday, despite earlier in the session, markets lifted on reports that the United States, Canada, and Mexico agreed on a plan to remove duties on steel and aluminum. On another note, a measure of consumer confidence hit a 15-year high. In a preliminary reading for May, the University of Michigan’s consumer sentiment index climbed to 102.4. The result exceeded expectations of 97.1.