S&P 500 and NASDAQ Pulled Back, Dow Rose to Record Highs
After falling last week amid geopolitical concerns, the S&P 500 regained strength this week. It rose in the first three trading days this week. It rose to fresh record highs but pulled back on September 14. On Thursday, six out of the 11 major sectors moved higher. Strength in the real estate and utilities sectors pushed the market higher. In contrast, weakness in the telecom services and consumer discretionary sectors weighed on the market.
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The market sentiment has improved this week. Geopolitical concerns that surfaced in the markets last week have calmed down. On Thursday, the market’s upward movement was limited by weakness in the retail sector. According to the U.S. Bureau of Labor Statistics, the US core consumer price index rose 1.7% year-over-year in August—higher than the forecast of 1.6%. On the other hand, initial jobless claims fell by 14,000 to 284,000 last week. The rise in inflation increased the expectations of an interest rate hike in 2017 and weighed on the market. The market is waiting for the release of retail sales and industrial production data in the early hours on September 15.
On September 14, the S&P 500 started the day lower and ended the day almost flat. The CBOE Volatility Index (or VIX) measures uncertainty in the market. On September 14, it fell 0.57% to 10.44. The VIX is measured on a scale of one to 100 with 20 as the historical average. The VIX is also called the “fear index.” It usually has an inverse relationship with stocks and rises when the S&P 500 falls.
NASDAQ and Dow
The NASDAQ Composite Index started the day lower and closed the day with a loss. The NASDAQ Composite Index fell 0.48% and closed the day at 6,429.08. The Dow Jones Industrial Average rose 0.2% and closed at 22,203.48. Despite mixed sentiment in the market, the Dow rose to fresh record highs amid a rally in Boeing (BA).
In the next part, we’ll discuss the S&P 500’s top gainers on September 14.