The S&P 500 gained for four consecutive trading weeks and closed last week at fresh record high price levels. However, the S&P 500 started this week on a mixed note by pulling back on January 29, 2018. On Monday, the S&P 500 opened the day lower and closed with a loss.
On January 29, all of the S&P 500’s 11 major sectors decreased. Weakness in the energy, utilities, and telecom services sectors pushed the market lower.
The market sentiment was strong last week amid increased buying momentum. The end of the US government shutdown, the release of supporting economic data, and President Trump’s bullish comments on the dollar pushed the market higher last week. On Monday, weakness in multiple sectors weighed on the market. Weakness in oil prices weighed on the energy sector, while the sell-off in Treasuries took the shine out of the real estate, utilities, and telecom services sectors. On the economic data front, according to the Bureau of Economic Analysis, US personal spending recorded 0.4% growth in December, which was less than the expected growth of 0.5%.
The CBOE Volatility Index (or VIX) measures uncertainty in the market. It rose 24.9% to 13.84 on Monday. The index is measured on a scale of one to 100 with 20 as the historical average. The VIX is also called the “fear index.” Usually, it has an inverse relationship with stocks and rises when the S&P 500 falls.
NASDAQ and Dow
Amid weakness in the IT sector, the tech-heavy NASDAQ Composite Index declined on Monday. The NASDAQ Composite fell 0.52% on January 29 and closed the day at 7,466.50. The Dow Jones closed the day at 26,439.48—a decline of 0.67%.
Next, we’ll discuss the S&P 500’s top gainers on January 29.