17 Oct 2021
U.S. Stock Market Performance Improves after Months of Lows
The Index Today
U.S stocks saw an increase last Friday, reflecting the biggest gains after months of lows. Stocks were seen on the lower side at the start of the week but then gradually went up as companies reports were issued for the quarter.
The release of economic data improved investor sentiment and overall outlook. According to reports, retail sales went up for the month of September despite worries of growing number of covid infections. S&P 500 saw a gain of 33.11 points or 1.8% making this the best weekly performance in 3 months. On the other hand, The Dow Jones Industrial Average gained 382.20 points or 1.1%.
The Nasdaq Composite went up 73.91 points or 0.5%. Goldman Sachs Group shares went up $14.87 or 3.8% after the revenue reports were released which showed earnings of $5.38 billion for the third quarter.
Logistics firm J.B Hunt Transport Services shares went up $15.31 and metal company Alcoa Shares climbed 15%. However, Moderna shares saw a drop of $7.67 after news broke of the FDA delaying approval decision for vaccine. Despite an overall positive outlook for investors, the worries of supply chain issues and inflation are still weighing on market forecasts.
Yields on 10-year treasury notes went up to 1.574% whereas bond prices fell. Investors are still debating on whether the inflation is transitory or will go well into the long run. Richard McGuire, head of rates strategy at Rabobank said, “We’ve seen an ebb and flow this week. High prices will sow the seed of their own downfall.”