The Week on Wall Street
Stocks were mixed last week as worries in Washington D.C. over a fiscal stimulus bill being passed to Europe, which is seeing a marked increase of new COVID-19 cases.
The Dow Jones Industrial Average declined 1.75%, while the Standard & Poor’s 500 fell 0.63%. The Nasdaq Composite index gained 1.11% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, slumped 4.20%. , ,
The week wasn’t entirely absent of good news. Investors focused on reports of new progress in developing a vaccine and the passage in the House of Representatives of a bipartisan continuing resolution bill to fund the government through December 11th.
The Dow and S&P 500 were lower for the fourth straight week. But the NASDAQ broke a three-week losing streak. With three days left in September, all three benchmarks were pacing for their first monthly losses since March, which saw the market plunge to coronavirus lows on March 23. As of Friday’s close, the Dow and S&P 500 were both off about 8% from their record highs. The NASDAQ was off nearly 9.5% from its high.
For the third quarter the Dow, S&P 500 and NASDAQ recorded strong gains, and the Dow and S&P 500 were each up about 50% since that late-March Covid-19 bottom while the Nasdaq was up nearly 65% over the same time period.
Fiscal Stimulus on Life Support
Market hopes for an additional fiscal stimulus bill, which were already fading, suffered another setback as events in Washington, D.C., appeared to make it more unlikely that lawmakers and the president could come together to create a compromise spending bill.
Many economists and market observers, along with Federal Reserve Chairman Jerome Powell, believe that further spending may be needed to maintain the momentum of the current economic recovery.
THIS WEEK: KEY ECONOMIC DATA
Tuesday: Consumer Confidence Index. Expecting a slight increase.
Wednesday: ADP Report. Gross Domestic Product (GDP) numbers.
Thursday: ISM manufacturing PMI and initial Jobless Claims.
Friday: Employment Situation. Factory Orders.
Source: Econoday, September 25, 2020
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.
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Tags: coronavirus, fiscal stimulus, NASDAQ, pre-election, S&P 500, Wall Street