September 21 – September 25 Week in Review
Last week was a classic roller coaster ride for the market. The S&P 500 fell 0.6%, its fourth straight weekly decline, the Dow Jones Industrial Average declined 1.8%, and the Russell 2000 declined 4.0%. The Nasdaq Composite was the sole bright spot, gaining 1.1%.
There wasn't one thing investors could point to and say this is why the broad market struggled. Instead, it was another week filled with events that fed into the general uncertainty and the negative momentum seen so far this month.
Growth concerns were evident in the declines in the cyclical energy, materials, financials, and industrials sectors. The information technology, consumer discretionary, and utilities sectors closed higher.
The Nasdaq turned positive at the end of the week, as shares of Apple, Amazon, and Microsoft rebounded nicely on no news. These stocks rose between 3.5% and 5% on the week.
In Washington, the passing of Supreme Court Justice Ginsburg, as viewed through the lens of the market, was another factor that investors initially thought could take focus away from a fiscal relief bill before the election. Democrats are reportedly preparing a $2.4 trillion relief bill, but it's unlikely to have the support of Republicans.
On the coronavirus front, Johnson & Johnson advanced its COVID-19 vaccine candidate to Phase 3 trials, while several countries in Europe reinstated business restrictions to help curb a resurgence of the virus. In China, Beijing updated its trade blacklist without naming any affected companies.
U.S. Treasuries finished mostly higher last week, particularly on the longer-end of the curve. The 2 year yield declined one basis point to 0.13% and the 10 year yield declined three basis points to 0.66%.
In other markets the U.S. Dollar Index gained 1.8% to 94.59, WTI crude closed slightly higher at $40.25 a barrel, and gold futures fell 4.9% to $1866.30 an ounce.
September 28 – October 2 Economic Calendar