How Did the S&P 500, NASDAQ, and Dow Perform Last Week?
Following a strong trading week, the S&P 500 started last week on a mixed note. However, the S&P 500 regained strength as the week progressed amid the improved market sentiment and rose to a fresh record high price levels. In the week ending December 1, nine out of 11 major S&P 500 sectors closed the day with gains.
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Strength in telecom services and financials sectors supported the market, while weakness in real estate and information technology weighed on the market.
The market sentiment was strong at the beginning of last week amid strong third-quarter corporate earnings data and expectations about the tax reform bill’s progress. As the week progressed, concerns about a delay in the tax reform bill weighed on the market, especially on Friday. On December 1, the market opened the day lower amid the release of November’s weaker-than-expected manufacturing data and dented market sentiment. The market regained strength as the day progressed and closed Friday with limited losses.
The S&P 500 rose to a fresh record high price levels last week and ended the week at elevated levels. The CBOE Volatility Index (or VIX) measures uncertainty in the market. It rose 18.2% to 11.43 last week. 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.” Usually, it has an inverse relationship with stocks and rises when the S&P 500 falls.
NASDAQ and Dow
The tech-heavy NASDAQ Composite Index pulled back last week amid the sell-off in the IT sector. The NASDAQ Composite Index fell 0.6% in the week ending December 1 and closed the week at 6,847.59. The Dow Jones Industrial Average closed the week at 24,231.59—a gain of 2.9%.
In the next part, we’ll discuss how US Treasury yields and the US Dollar Index performed in the early hours on December 4.