After gaining for six consecutive trading weeks, the S&P 500 started this week on a weaker note. The market opened the week higher at fresh record intraday levels, but lost strength on Monday as the day progressed. On October 24, seven out of the 11 major sectors closed the day with gains.
Strength in the financials and materials sectors pushed the market higher. Weakness in the real estate and healthcare sectors limited the market’s gains.
The market sentiment is strong this week due to increased optimism about economic growth. The market’s risk appetite was lower at the beginning of the week. The market is looking forward to the release of third quarter corporate earnings from nearly 190 of the S&P 500’s companies this week. However, hopes about the execution of proposed tax cut plans added strength to the market. The market is also waiting for the release of third quarter US GDP data this week. The release of strong corporate earnings on Tuesday supported US markets.
After breaking s six-day gaining streak on Monday, the S&P 500 started Tuesday higher and ended the day positive. The CBOE Volatility Index (or VIX) measures uncertainty in the market. On October 24, it rose 0.81% to 11.16. 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.” It usually has an inverse relationship with stocks and rises when the S&P 500 falls.
NASDAQ and Dow
On October 24, the NASDAQ and Dow Jones Industrial Average opened the day higher. The NASDAQ closed the day at 6,598.43 with a gain of 0.18%. The Dow Jones Industrial Average rose amid strong corporate earnings and closed at a fresh record high of 23,441.76 with a gain of 0.72%.
In the next part of this series, we’ll discuss how the US Dollar Index and US Treasury yields performed early on October 25.