After rising for eight consecutive trading weeks, the S&P 500 started this week on a stronger note by rising to record high price levels on Monday. Despite mixed sentiment, the S&P 500 continued to rise on November 7–8. On Wednesday, seven out of the S&P 500’s 11 major sectors closed the day with gains.
Strength in the consumer staples and IT sectors supported the market, while weakness in the energy and financials sectors limited the gains.
The market sentiment is mixed at the beginning of this week amid doubts about the smooth execution of proposed tax cuts. The market has been waiting for the release of the Senate bill on tax reforms, which is scheduled to release on November 9. Despite mixed sentiment, the S&P 500 rose to record high price levels on Wednesday due to the rally in IT stocks. Concerns about the tax reform plan weighed on financials, while the pullback in oil prices weighed on the energy sector on November 8. The market is looking forward to the release of US initial jobless claims at 8:30 AM EST on Thursday.
The S&P 500 started the day on a mixed note and moved higher as the day progressed. It’s important to note that the CBOE Volatility Index (or VIX) measures uncertainty in the market. On November 8, it fell 1.1% to 9.78. 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
The NASDAQ and Dow Jones Industrial Average started the day with mixed sentiment. Amid a rally in tech stocks, the tech-heavy NASDAQ rose and closed the day at 6,789.12 with a gain of 0.32%. The Dow Jones Industrial Average closed the day almost flat at 23,563.36.
In the next part of this series, we’ll discuss how the US Dollar Index and Treasury yields performed in the early hours on November 9.