Let’s take a look at where shares and stock markets stand this week, and what you should pay attention to.
The U.S. Economy
- S. stocks are the lowest this week after an unexpected rise in joblessness. This reinduced concern about the economic recovery that has already been stalling a lot. The first obstacle in jobless claims since March comes as Congress negotiates a new relief package for millions of Americans. They will probably lose their benefits at the end of July. Other worrying signs of economic slowing are added to concern that the growth in some areas will have to pause. The dollar weakened, and Treasuries rose.
- The S&P 500 Index went down from a four-month high, due to significant losses in technology firms and companies that make now-essential consumer goods, that were wanted a lot during the strict lockdown. The Nasdaq 100 Index dropped low for two weeks already, nullifying Monday’s rally that was the biggest since April this year.
- Twitter Inc. stocks jumped after daily-user growth rose due to many disputes, but Alphabet Inc., Amazon.com Inc, and Apple Inc. lost more than 3%. After cloud growth slowed, Microsoft Corp. went down, probably because people are focusing more on being in nature as much as they can. Even Tesla shares slid a bit, but not so much that it hurts the value of its shares.
- Crude slumped, while metals continued their quick run of gains that have taken gold and silver prices to multi-year highs.
Gene Goldman, chief investment officer at Cetera Financial Group, said that recovery would inevitably happen, but we cannot predict when the joblessness is rising. That will affect workers and consumers as well, and of course, the stock market.
Europe is still recovering.
In Europe, the Stoxx 600 Index increased on gains, especially in the carmaker business and consumer products, led by Unilever NV’s jump after sales fell less than expected.
- Italy’s benchmark bonds fell below 1% for the first time since March during short-term happiness over the Europe Union’s pandemic recovery package.
- Positive signals from an earnings season that is expected to be historically weak had been driving investors into serious risk assets. An increase in U.S.-China trade war tensions and the virus’s reappearance across large parts of America, hindered that optimism, especially in California.
It looks like whenever we’re on the verge of getting back on track, something has to happen and stop the slow recovery of the economy. It simply requires patience from us and resilience in these times of pandemic.
These are the main moves on stock market charts.
- The S&P 500 Index fell 1.2% to 3,235 as of 4 p.m. EST.
- The Dow Jones stock value fell by 1.3%.
- The Nasdaq Composite Index declined by 2.3%.
- The Stoxx Europe 600 Index closed up 0.1%.
- The Bloomberg Dollar Spot Index lost 0.1%.
- The euro gained 0.2% to $1.1593, reaching the strongest in more than two years on its fifth consecutive advance.
- The Japanese yen grew by 0.3% compared to 106.84 per dollar.
- West Texas Intermediate crude dipped 1.6% to $41.24 a barrel.
- Gold futures strengthened 1% to $1,882 an ounce, reaching the highest in about nine years on its fifth consecutive advance.
- Copper climbed 0.3% to $2.94 a pound.
- There are going to be many ups and downs, atypical even for the stock market. Due to the pandemic, it is unsure how things will develop during the next half of 2020 and also 2021. We are still struggling with a high unemployment rate, new COVID cases, and we can only assume that technology-related stocks are going to go up.