The Week on Wall Street
Stocks traveled a volatile path last week as investors appeared concerned about the upcoming elections, an uncertain economy, and more delays with additional fiscal stimulus.
The Dow Jones Industrial Average slid 1.66%, while the Standard & Poor’s 500 slumped 2.51%. The Nasdaq Composite index plummeted 4.06% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, rose 1.44%.
Stocks Continued To Slip
In a holiday-shortened week of trading, stocks resumed their slide from the prior week, with the technology-heavy Nasdaq slipping into correction territory in a three-day span ended on Tuesday, September 8th. (A correction is defined as a decline of at least 10% from a recent high.)
After staging a strong rebound on Wednesday, stocks once again headed lower as the Senate failed to pass another coronavirus stimulus bill. Mega-cap technology companies remained under pressure throughout the week. Energy stocks added to investors woes, plunging on data showing an unexpected build-up in inventories.
The market ended the week on a mixed note, as technology companies lost additional ground.
THIS WEEK: KEY ECONOMIC DATA
Tuesday: Industrial Production.
Wednesday: Federal Open Market Committee (FOMC) Announcement.
Thursday: Jobless Claims. Housing Starts
Friday: Leading Economic Indicators.
THIS WEEK: NOTABLE COMPANIES REPORTING EARNINGS
Tuesday: Adobe Systems (ADBE), Lennar Corporation (LEN), Fedex (FDX)
Let’s call this market pull back what it is: a pull-back in mega-cap tech. Since big cap tech has become the largest players in most of indexes, a pull back in this segment of the market has the affect of dragging down about everything. So, last week, down it went. This is not to say other segments of the market are immune. Many sectors of the market dropped last week. But tech seems to be the tail wagging the markets. So, for this week, look for things to oscillate back towards the middle… from over-bought to over-sold back to the middle of the range. For this week, look for volatility to remain, but for the bias to be slightly positive as large-cap tech looks to likely regain some of its lost ground.