The S&P 500 fell lower last week amid geopolitical concerns. But it started this week on a stronger note by rebounding on Monday. Ten of the S&P 500’s 11 major sectors had a positive close on August 14, 2017. Weakness in the energy sectors weighed on the market, but strength in real estate, information technology, and financials pushed the market higher.
The S&P 500 staged a brief recovery on Friday, August 11, amid decreased interest rate expectations and geopolitical tensions. But on Monday, August 14, the market moved with strength as geopolitical tensions between the United States and North Korea eased and increased the risk appetite of market participants. Increased buying during the falls made the S&P 500 record its largest daily percentage gain since April 2017 and improved market sentiment. The market is looking forward to the release of the NY Empire State Manufacturing Index data and retail sales data, which are both scheduled to be released at 8:30 AM EST on Tuesday, August 15.
On August 14, the S&P 500 started the day higher and closed with gains. The CBOE Volatility Index (or VIX) measures uncertainty in the market. On August 14, it fell 4.2% to 11.8. The VIX is measured on a scale of one to 100, with 20 as the historical average. It’s also called the fear index. It usually has an inverse relationship to stocks and rises when the S&P 500 falls.
The NASDAQ and the Dow
Similar to the S&P 500, the Nasdaq Composite Index and the Dow Jones Industrial Average started the day higher and ended the day with profits. The tech-heavy NASDAQ was supported by strength in the information technology sector for the second consecutive day and gained the most of the three major indexes. The Nasdaq Composite Index rose 1.3% and closed the day at 6,340.23. The Dow Jones Industrial Average rose 0.62% and closed at 21,993.71. In the next part, we’ll see how commodities are performing in the early hours of August 15.