S&P 500 and NASDAQ Rose, Dow Reached Fresh Record Highs
After reaching three-week high price levels on July 12, the S&P 500 continued to move higher on Thursday. Seven out of 11 major sectors closed higher on July 13. The rally in the financials and energy sectors supported the market, while weakness in the telecom services and utilities sectors limited the profits.
Interested in COMP-INDEX? Don't miss the next report.
Receive e-mail alerts for new research on COMP-INDEX
The S&P 500 started this week with weaker sentiment and subdued momentum amid concerns about the pace of the Fed’s interest rate hikes. However, the market regained strength in the middle of the week after Fed Chair Janet Yellen’s testimony. She said that the Fed will stick to gradually tightening monetary policy. She also added that the central bank will gradually shrink its balance sheet. With improved sentiment, the S&P 500 started Thursday and moved higher. Despite the weaker jobless claims report, the market rose amid the upbeat Producer Price Index and higher expectations of a strong earnings season.
The market is looking forward to US economic releases that are scheduled to release on Friday—retail sales, industrial production, and the consumer price index.
On July 13, the S&P 500 started the day higher and moved to the highest levels in three weeks. The S&P 500 VIX Index, or CBOE Volatility Index, measures uncertainty in the market. On July 13, it rose 1.7% to 10.07. VIX is measured on a scale of 1–100 with 20 as the historical average. It’s also called the “fear index.” It usually moves opposite to stocks’ movements and rises when the S&P 500 falls.
NASDAQ and Dow
Similar to the S&P 500, the NASDAQ Composite Index opened higher on July 13 and moved higher. The NASDAQ Composite Index rose 0.21% and closed the day at 6,274.44. The Dow Jones Industrial Average was boosted by a rally in the financials sector and closed at fresh all-time highs. The Dow rose 0.1% and closed at 21,553.09.
In the next part, we’ll discuss the S&P 500’s top and bottom performers on July 13.