S&P 500, NASDAQ, and Dow Pulled Back on May 15
After regaining strength last week, the S&P 500 started this week on a stable note. However, the S&P 500 (SPY) opened lower on May 15 and continued to fall. On Tuesday, ten out of 11 major S&P 500 sectors closed the day lower. Weakness in the real estate, healthcare, and IT sectors pushed the market lower.
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The market sentiment was mixed on Monday amid the improved risk appetite and weakness in defensive stocks. On May 15, strength in Treasury yields weighed on the equity market and drove the market. The ten-year Treasury yield traded above 3.1% and weighed on all of the S&P 500’s major sectors. Growing retail sales brought back inflation concerns and decreased the risk appetite. According to the Census Bureau, US retail sales increased 0.3% in April.
The CBOE Volatility Index (or VIX) measures uncertainty in the market. The index gained 13.2% to 14.63 on May 15. The index is measured on a scale of one to 100 with 20 as the historical average. The VIX is also called the “fear index.” Usually, the index has an inverse relationship with stocks and rises when the S&P 500 falls.
NASDAQ and Dow
The NASDAQ Composite Index (QQQ) and the Dow Jones Industrial Average (DIA) opened lower on Tuesday and closed the day lower. Weakness in the IT sector led the tech-heavy NASDAQ Composite Index lower on May 15. The NASDAQ Composite Index declined 0.81% and closed the day at 7,351.63. After gaining for eight consecutive trading days, the Dow Jones Industrial Average declined on Tuesday. Rising Treasury yields weighed on the market. The Dow Jones Industrial Average declined 0.78% and closed the day at 24,706.41.
Next, we’ll discuss how the S&P 500’s top gainers performed on May 15.