The Markets (as of market close September 4, 2020)
Stocks sagged last Monday, but not enough to dampen a banner month of returns in August. Only the Nasdaq pushed ahead to start the week as the remaining benchmark indexes lost value. Crude oil prices, Treasury yields, and the dollar all declined.
Last Tuesday marked the first day of September and the start of another strong market performance. Each of the benchmark indexes listed here posted solid gains, led by the Nasdaq (1.4%), the Russell 2000 (1.1%), the Dow (0.8%), the S&P 500 (0.8%), and the Global Dow (0.1%). Rising bond prices drove Treasury yields lower. Crude oil prices and the dollar rose. Surging mega-caps gave the market a boost, as did materials, technology, and communications.
Wednesday saw both the S&P 500 and the Nasdaq soar to fresh record highs. Utilities and financials led the way while technology shares lagged. The dollar rose while crude oil and Treasury yields dropped. Global stocks also surged last Wednesday as investors anticipated further stimulus (and liquidity) from central banks.
Last Thursday, in a complete reversal, stocks suffered their worst day since June. The Nasdaq plunged 5.0%, the S&P 500 dropped 3.5%, the Russell 2000 gave back 3.0%, the Dow fell 2.8%, and the Global Dow lost 1.7%. Money moved to Treasuries sending bond prices higher and yields plummeting. Crude oil prices fell and the dollar rose. Mega-caps and technology stocks sank, pulling the major market indexes lower. Analysts have been pointing to overvaluations in some sectors, particularly technology, and investors may be taking heed.
Tech shares continued to tumble last Friday, pulling the Nasdaq down to its worst week since March. The selloff that began last Thursday continued into Friday as each of the benchmark indexes listed here lost value on the last day of the week. Treasury yields climbed, the dollar fell, and crude oil prices fell below $40 per barrel. Mega-caps tumbled again last Friday as investors continue to show concern that the market may be overvalued.
For the week, early gains weren’t enough to overcome losses later, as each of the indexes listed here lost value. The Nasdaq fell 3.3%, followed by the Russell 2000 (-2.7%), the S&P 500 (-2.1%), the Dow (-1.8%), and the Global Dow (-1.8%). Even
favorable employment data wasn’t enough to halt the selloff. An additional 1.4 million
new jobs were added in August, and the latest unemployment figures showed the total
number of claimants dipped below 1 million.
Crude oil prices ended the week below $40.00 per barrel, closing at $39.59 per barrel
by late Friday afternoon, down from the prior week’s price of $42.97. The price of gold
(COMEX) also dropped last week, closing at $1,940.60, down from the prior week’s
price of $1,972.80. The national average retail price for regular gasoline was $2.222 per
gallon on August 31, $0.040 higher than the prior week’s price but $0.341 less than a
year ago. Click for more: Winthrop Partners Weekly Update 9-8-2020