The last couple of weeks have brought back some volatility that had been absent from the market recently. Here is our market update for the week of 9/7 – 9/11:
- DJIA – down 1.6%
- S&P 500 – down 2.5%
- NASDAQ – down 4.1%
For the second week in a row, all 3 major US Indexes fell. The NASDAQ led the drop, falling into a correction on Tuesday as the index was down 10% from its’ record high set just a few days earlier. Many of the largest tech companies weighed on the NASDAQ and the S&P 500 with large weekly losses. There was some bounce back, however, as the steepest losses on Tuesday were followed by a strong Wednesday in the market. All-in-all, it was a volatile and mostly challenging week for the market.
For the year:
- DJIA – down 1.3%
- S&P 500 – up 4.8%
- NASDAQ – up 21.8%
So far, the lack of a Coronavirus Aid Package from Congress has seemed to weigh heavily on the economy and many sectors of the market. State aid and another round of direct payments to Americans are still large sticking points between the GOP-led Senate and the Democrat-controlled House. Both sides appear to be running out of time to get a bill passed prior to the election in November.
Inflation also remains a concern but it is still unclear as to how much this may impact the economy over the next 6-12 months. The Federal Reserve set an inflation target of 2.0% and to this point, inflation has stayed below, despite a high unemployment rate, but it is rising compared to this point last year.
This week the Federal Reserve Board will meet in a 2-day session Tuesday and Wednesday. They are expected to announce no major policy moves but give some additional guidance on how the fed views inflation going forward.
Thanks for reading this week’s market update! If you have any questions or would like to discuss recent stock market updates in more detail, feel free to contact us at 847-680-9050.