US Stock Markets Hit New Highs, Treasury Yields Rise As Choppy Week Ends By Reuters



© Reuters. FILE PHOTO: A man looks at stock market monitors in Taipei on January 22, 2008. REUTERS / Nicky Loh


By Jessica DiNapoli

NEW YORK (Reuters) – The and Nasdaq indexes hit record highs on Friday after a turbulent week in which investors worried about the increase in COVID-19 cases, spurred by the more contagious Delta variant, while that US Treasury yields rose ahead of a Federal Reserve meeting next week.

Megacap’s tech stocks helped push major US indices up, with the S&P 500 and Nasdaq on track to close at record highs. Yields on U.S. Treasuries were also up, as was the dollar, with investors eyeing next week’s Federal Reserve meeting, where the U.S. recovery and Fed support for the economy will be at the center of the ‘Warning.

“We are ending the week with a very nice trade, and it is mainly driven by profits and profits especially in stocks that speak to the consumer, which is not a new story but it is a story that adds momentum to trade in the second half of the year, ”said Peter Kenny, founder of Kenny & Co LLC, the parent company of Strategic Board Solutions and Kenny’s Commentary, a political and economic newsletter aimed at subscribers.

Despite its decline, oil should end the week with little change.

By mid-afternoon, the S&P 500 had gained 217.79 points, or 0.63%, to 35,041.14, the S&P 500 had gained 42.9 points, or 0.98%, to 4,410, 38 and the 155.56 points, or 1.06%, to 14,840.16.

Investors assume that “things will get better, travel is going to increase,” said Steve Massocca, managing director of Wedbush Securities. “There are concerns about the Delta variant.

“If this thesis is jeopardized, it will put a stop to the ‘vertigo’ of the market,” he added.

Some parts of the United States are re-implementing mask warrants due to new cases, while others have not, which is confusing.

Business activity in the United States grew at a moderate pace for a second consecutive month in July amid supply constraints, suggesting a slowdown in economic activity, a report by data firm IHS revealed on Friday. Markit. IHS Markit said its US composite PMI output index, which tracks the manufacturing and services sectors, fell to a four-month low of 59.7 from 63.7 in June. A reading above 50 indicates growth in the private sector.

The Dow Jones Industrial Average rose 237.61 points, or 0.68%, to 35,060.96, the S&P 500 gained 37.39 points, or 0.86%, to 4,404.87 and the Nasdaq Composite added 115.07 points, or 0.78%, to 14,799.66.

Positive corporate earnings helped the stock market. American Express Co (NYSE 🙂 jumped 1.7% after posting better-than-expected second quarter earnings.

Social media companies Twitter Inc (NYSE 🙂 and Snap Inc (NYSE 🙂 gained 3.8% and 24.5%, respectively, after their good results.

The increase of 0.085%.

The yield hovered around 1.3%, nearly 17 basis points higher than a five-month low set on Tuesday, but was still in the low end of a recent range. The benchmark note traded up 1.8 basis points to 1.285%.

Chart: S&P 500 stock index vs absolute change, daily:

Financial markets have swung from one direction to the other this week as investors attempt to assess what the burgeoning Delta variant means for the global economy.

After posting its biggest one-day drop since May on Monday, the S&P 500 stock index posted the biggest one-day jump since March a day later. He should end the week higher. The currency, bond and commodity markets experienced similar gyrations.

“The stock markets are reporting some symptoms of fatigue after a long rally and are recognizing the peak growth environment,” said Antonio Cavarero, chief investment officer at Generali (MI 🙂 Insurance Asset Management.

“But in the short term, actual returns are still too low to offer an alternative, so how what happens next depends on COVID and macro data.”

Financial market volatility is expected to continue, given the resurgence of the Delta variant and economic uncertainty.

“Uncertainty has increased further with the pandemic,” said Pascal Perrone, bond portfolio manager at Eric Sturdza Investments in Geneva. “I don’t think there will be a shutdown of economies as we saw it last year, but we don’t know.”

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