Market Status Changed to a Rally Attempt; Metal and Pharma Stocks Underperform

Market Status

After posting losses earlier in the trading day, the S&P 500 index staged a rally attempt on August 28, 2023. The index closed up 0.5% at 4,168.94, while the Nasdaq Composite gained 0.8% to 12,603.96. The Dow Jones Industrial Average also closed higher, gaining 0.3% to 33,193.85.

The market's rally attempt was likely due to a combination of factors, including strong earnings reports from several major companies and hopes that the Federal Reserve will slow the pace of its interest rate hikes.

However, some sectors of the market underperformed on Monday. Metal stocks and pharmaceutical stocks were among the worst performers, with the S&P 500 Metals & Mining Index losing 2.2% and the S&P 500 Pharmaceuticals Index declining 1.3%.

Metal Stocks

Metal stocks have been under pressure in recent weeks due to concerns about a slowdown in economic growth in China, the world's largest consumer of metals. The S&P 500 Metals & Mining Index has now lost more than 10% in the past month.

Some of the biggest decliners in the metal sector on Monday included Freeport-McMoRan (-4.3%), Newmont Mining (-3.1%), and Rio Tinto (-2.8%).

Pharmaceutical Stocks

Pharmaceutical stocks have also been underperforming in recent weeks, with the S&P 500 Pharmaceuticals Index losing more than 5% in the past month.

Some of the biggest decliners in the pharmaceutical sector on Monday included Pfizer (-1.9%), Merck (-1.7%), and Johnson & Johnson (-1.4%).

Conclusion

The S&P 500 index staged a rally attempt on August 28, 2023, but metal and pharmaceutical stocks underperformed. The market's rally attempt was likely due to a combination of factors, including strong earnings reports from several major companies and hopes that the Federal Reserve will slow the pace of its interest rate hikes.