US stock market ended in gains
The SPDR S&P 500 ETF (SPY) and the Direxion Daily S&P 500 Bull 3X ETF (SPXL) rose by 0.06% and 0.33%, respectively, on Friday, October 9. The trailing past week was one of the best for Wall Street. The week saw soaring oil prices, followed by a rally in mining, material, and industrial stocks. The trailing five-day return of the SPY was 3.3%.
The above graph shows the market movements for October 9. The day saw crude prices slide in the wake of an oil supply glut. The United States Oil Fund (USO) fell by 0.31%. US government bond prices rose on the day, and as a result, the bond yield fell on October 9. The iShares 20+ Year Treasury Bond (TLT) rose 0.26% on the day. And the US dollar, represented by the PowerShares DB US Dollar Bullish ETF (UUP), fell by 0.48%. However, there was a rise in the demand for precious metals and other metals like copper. These assets are dollar denominated, and their demand overseas rises with the fall in the US dollar.
Metals and mining stocks
Gold, represented by the SPDR Gold Trust (GLD), rose by 1.6% on October 9. Similarly, metals like silver, represented by the PowerShares DB Silver ETF (DBS), and copper, represented by the First Trust ISE Global Copper ETF (CU), went up by 1% and 5.3%, respectively. Their respective miner ETFs, represented by the VanEck Vectors Gold Miners ETF (GDX), the Global X Silver Miners ETF (SIL), and the Global X Copper Miners ETF (COPX) rose by 5.5%, 4.4%, and 4.5%, respectively, on October 9.
Mining stocks Newmont Mining (NEM), Freeport-McMoRan (FCX), Nucor (NUE), and Allegheny Technologies (ATI) rose by 1.5%, 0.22%, 0.5%, and 1.6%, respectively, on October 9. These stocks registered big gains in the past week owing to the upgrading of the mining sector. The trailing five-day returns of NEM, FCX, NUE, and ATI were 10.9%, 27%, 9.1%, and 19.8%, respectively.
In the next part of the series, we’ll look at the performances of the component sectors of the SPDR S&P 500 ETF (SPY) on October 9.