S&P 500, NASDAQ, and Dow Were Weak on August 9
This week, the S&P 500 started on a stronger note by rising to new record high price levels. On August 8, despite trading at new record high price levels, the market pulled back and closed lower due to the decreased risk appetite. On August 9, the market started the day with a weaker sentiment but regained strength as the day progressed.
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Six out of the S&P 500’s 11 major sectors closed positive on August 9. Weakness in the Consumer Discretionary and Utilities sectors weighed on the market. However, strength in the Health Care and Materials sectors limited the losses. Increased geopolitical concerns between the US and North Korea limited the S&P 500’s upward movement. The selling in US markets started on August 8 after President Trump warned North Korea that threats will be “met with fire and fury.” North Korea said that it was considering Guam as a target to fire missiles. The tension increased the selling pressure in the market. Strong corporate earnings and supporting economic data helped the market move higher.
On August 9, the S&P 500 started the day lower but recovered as the day progressed. The S&P 500 VIX Index, or CBOE Volatility Index, measures uncertainty in the market. On August 9, it rose 1.4% to 11.11. The 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
The NASDAQ Composite Index and Dow started the day lower but regained strength and recovered some losses as the day progressed. The NASDAQ Composite Index fell 0.28% and closed the day at 6,352.33. The Dow Jones Industrial Average fell 0.17% and closed at 22,048.70.
In the next part, we’ll discuss how the US Dollar Index and US Treasury yields performed in the early hours on August 10.