After gaining for three consecutive trading weeks, the S&P 500 started this week with an improved sentiment. The S&P 500 fell in three out of four trading days last week. Six out of the 11 main sectors closed higher last week. The rally in the telecom services and energy sectors supported the market, while weakness in the Health Care and IT sectors weighed on the market.
The market sentiment was stronger in the second half of July amid better-than-expected second quarter corporate earnings. Despite reaching fresh record highs, the Senate’s failure to pass the healthcare reform bill fueled concerns about the Trump Administration’s ability to implement the promised economic reforms. The U.S. Office of Special Counsel’s extended investigation into President Trump’s business transactions also dented the sentiment. Last week, the market lost strength in the second half of the week and pulled back due to the sell-off in the technology sector and mixed earnings reports released last week.
Last week, the S&P 500 started on a stable note and rose to record high price levels. However, it pulled back at the end of the week. The S&P 500 VIX Index, or CBOE Volatility Index, measures uncertainty in the market. In the week ending on July 28, it rose 9.9% to 10.29. The 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
Last week, the NASDAQ Composite Index started on a stable note and rose. However, it pulled back at the end of the week. The sell-off in the technology sector weighed the tech heavy NASDAQ Composite Index. The NASDAQ Composite Index fell 0.2% and closed the week at 6,374.68. On the other hand, the Dow Jones Industrial Average rose 1.2% and closed the week at 21,830.31.
In the next part, we’ll discuss Wall Street’s top performers in the week ending July 28.