Stocks slipped in the final days of trading last week on higher jobless claims and rising tensions in the U.S.-China relationship.
The Dow Jones Industrial Average lost 0.76%, while the Standard & Poor’s 500 dipped 0.28%. The Nasdaq Composite Index dropped 1.33% for the week. The MSCI EAFE Index, which tracks developed stock markets overseas, rose 1.24%.1,2,3
Stocks Lose Momentum
Market sentiment, however, turned negative after Thursday morning’s report of an uptick in new unemployment claims, which suggested a possible slowdown in hiring. The market was led lower by the technology sector ahead of quarterly reports from some of the sector’s biggest names.4
U.S.-China Tensions Escalate
The markets appear more focused on the apparent deteriorating relations between the two nations, worried about a repeat of the trade battle in 2018. Whether the rancor is managed is likely to remain a top concern for investors in the weeks ahead.
Investors have embraced these firms because they appear to be able to show solid financial performance in the midst of an economy coping with COVID-19.
THIS WEEK: KEY ECONOMIC DATA
Source: Econoday, July 24, 2020
THIS WEEK: COMPANIES REPORTING EARNINGS
Source: Zacks, July 24, 2020
1. The Wall Street Journal, July 24, 2020
2. The Wall Street Journal, July 24, 2020
3. The Wall Street Journal, July 24, 2020
4. NYTimes.com, July 23, 2020
5. CBSnews.com, July 22, 2020
6. APNews.com, July 24, 2020
7. CNBC, July 22, 2020
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Weekly Market Insights: Stocks React to Jobs Report
July 30, 2020