US Markets Lower After Thursday’s Rally

U.S. stocks turned lower after a mixed opening on Friday, a day after Wall Street rallied and the Nasdaq Composite index broke its last standing milestone from the dot-com era as it set a record intraday high.

All three major indexes were still on track to end the week higher.

On Thursday, Wall Street was boosted by strong data, which pointed to signs that the U.S. economy was recovering after growth came to a halt earlier in the year.

U.S. consumer prices last month increased the most in more than two years, jobless claims applications last week fell to a near 15-year low and factory activity in the mid-Atlantic region in June accelerated to a six-month high.

The U.S. Federal Reserve’s perceived dovishness regarding the pace of a rate hike also continued to boost equities.

Investors may see a spike in volume and volatility at the open and toward the closing bell as Friday marks a “quadruple witching” day – the expiration of stock options, index options, index futures and single-stock futures – as traders close hedging positions or roll them over at the last minute.

via Reuters

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza