The Markets (as of market close September 11, 2020)
Stocks continued to slide last Tuesday as falling tech shares pulled the Nasdaq down 4.1%. Crude oil prices plunged 7.5%, and Treasury yields sank 5.1% as money poured into bonds, driving prices higher. Investors, leery of overvaluations, continued to sell off shares. The relationship between the United States and China continued to sour as President Trump threatened recourse against American companies that create jobs overseas or that do business with China. By the close of trading, the S&P 500 lost 2.8%, the Dow fell 2.3%, the Russell 2000 lost 2.0%, and the Global Dow sank 1.6%.
After three days of sell-offs, tech shares reversed course last Wednesday. Lower stock prices were too tempting for some investors to pass up. The Nasdaq jumped 2.7%, the S&P 500 gained 2.0%, and the Dow climbed 1.6%. Crude oil prices and Treasury yields rose while the dollar declined.
Investors were clearly trying to scoop up some bargains last Wednesday as the sell-off resumed the following day. Tech and growth stocks plunged, pulling down the Nasdaq (-2.0%) and the S&P 500 (-1.8%). The Dow (-1.5%), the Russell 2000 (-1.2%), and the Global Dow (-1.0%) also lost value last Thursday. Crude oil prices and Treasury yields sank while the dollar was generally higher. Investors were also hit by a disappointing jobless claims report and the rejection by Senate Democrats of the Republican stimulus bill.
Stocks were mixed last Friday with the Dow, the S&P 500, and the Global Dow posting modest gains, while the Nasdaq and the Russell 2000 fell. Mega-caps and growth shares performed poorly and were outperformed by financials, industrials, and materials.
Overall, the major indexes fell for the second week in a row as each of the benchmarks listed here lost value. Tech stocks continued to fall, ending a five-month rally. The Nasdaq had its worst week since March. Global shares also plunged for the second consecutive week. Treasury prices rose sending yields lower, crude oil prices continued to sink, and the dollar dropped against most major currencies. Year to date, the Nasdaq and the S&P 500 remain ahead of last year’s pace, while the gap widened for the Russell 2000, the Dow, and the Global Dow.
Crude oil prices fell again last week, closing at $37.76 per barrel by late Friday afternoon, down from the prior week’s price of $39.59. The price of gold (COMEX) also rose last week, closing at $1,950.00, up from the prior week’s price of $1,940.60. The national average retail price for regular gasoline was $2.211 per gallon on September 7, $0.011 lower than the prior week’s price but $0.339 less than a year ago. For full article click here:Winthrop Partners Weekly Update 9-14-2020