After gaining for two consecutive trading days, the S&P 500 continued to move higher on Friday. Ten out of 11 major sectors closed higher on July 14. The rally in the real estate and IT sectors supported the market, while weakness in the financials sector limited the profits.
The market sentiment is stronger amid better-than-expected second quarter earnings from banks. JPMorgan Chase, Citigroup, and Wells Fargo started the earnings season with upbeat earnings. They set a positive tone for the earnings season. Despite weaker revenue from the banks’ respective trading divisions, banks posted upbeat earnings due to higher US interest rates.
Despite weaker economic data released on Friday, the market moved higher. Weaker economic data supported the Fed’s not so hawkish stance. The core CPI rose 0.1%, while retail sales fell 0.2% in June. Core CPI and retail sales were less than the market’s forecast.
On July 14, the S&P 500 started the day higher and moved to fresh all-time high levels. The S&P 500 VIX Index, or CBOE Volatility Index, measures uncertainty in the market. On July 14, it rose 4.6% to 9.95. 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 14 and moved higher. The NASDAQ Composite Index rose 0.61% and closed the day at 6,312.46. The rise in IT stocks pushed the tech-heavy NASDAQ Composite Index higher. The Dow rose 0.39% and closed at 21,637.74—a fresh record high.
In the next part, we’ll discuss how the US dollar and US Treasury yields are performing in the early hours on July 17.