The main US indexes ended Friday trading session with growth backed by the bank stocks and investors anticipating the key meeting between US President Donald Trump and his Chinese counterpart, Xi Jinping. Wall Street recorded its best first six months of the year for two decades.
The blue-chip benchmark Dow Jones Industrial Average advanced 73.38 points to 26,599.96 points with J.P. Morgan Chase performed best. The index added more than 7% to its value this month, which is its biggest growth in June since 1938. The year-to-date growth of the benchmark is 13.9%.
The broader S&P 500 added 0.6% to 2,941.74 points, with the financial sector performed best. For the month, the S&P 500 jumped by 6.9%, which is the best performance in June since 1955. The broad measure was also up by more than 17% since the beginning of the year, and this is the biggest gain since the first half of 1997.
The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was down 4.68% to 15.08.
The technology index Nasdaq Composite rose by 0.5% at the end of Friday’s trading, reaching a level of 8,006.24 points. For the month, the index recorded an increase of 7.4%.
The gains on Wall Street were limited due to uncertainty before the meeting between Donald Trump and Xi Jinping. The two leaders have to meet on Saturday at the G20 meeting in Osaka, Japan.
Both China and the United States have maintained their firm stance on trade, with the Chinese Commerce Department calling on Washington to stop pressure and sanctions against Huawei and other Chinese companies, and Trump has repeatedly threatened to impose duties on all Chinese imports if negotiations fail.
The big gains in June were made possible after the Federal Reserve opened the door for monetary policy easing later this year. This reinforced the market’s expectations of interest rate cuts in July.
On the bond markets, yields on 10-year and 30-year US government bonds rose to 2.007% and 2.532%, respectively.
Corporate stocks performance
The stocks of J.P. Morgan Chase added 2.7%, while Citigroup, Bank of America, Goldman Sachs and Wells Fargo finished the session with an increase of 2%. The shares of Morgan Stanley rose by 0.7%. This happens a day after they passed the Federal Reserve’s annual stress test and were approved to increase dividends and buy-back programs. Goldman raised its dividend by nearly 50% for the quarter, while J.P. Morgan increased it with 10 cents. The total payouts to bank shareholders from dividends and buybacks will hit 173 billion USD, a record high amount for the group
The stocks of Apple closed with down by 0.9% after design legend Jony Ive said he was leaving the iPhone maker to start his own venture.
Boeing shares ended little changed after losing 2.9% on Thursday amid the news that the company’s 737 MAX fleet, which has been grounded since March after two fatal crashes, could take much longer to receive regulatory clearance to bring the jets back online.
The stocks of UnitedHealth Group were down by 0.9% after the company said on Friday that it named Dirk McMahon, currently president and chief operating officer of its Optum platform as its new chief executive.
The top performers on the S&P 500 were EQT Corporation (+9.7%), Western Digital Corporation (+6.73%) and Brighthouse Financial Inc (+4.74%), while on the flipside were Pacific Gas & Electric Co (-4.34%), Dow Inc (-3.22%) and Patterson Companies Inc (-3.17%).