After closing last week at fresh record high price levels, the S&P 500 maintained the strength this week and rose to all-time high levels in the first two days of the week. On January 10, nine out of the 11 major S&P 500 sectors fell. Weakness in utilities and real estate weighed on the market. Strength in the financials and industrials sectors limited the market gains.
The market sentiment on the S&P 500 has been strong since the beginning of the week due to the improved global market sentiment. Increased confidence in major economies’ growth outlook around the globe strengthened investors’ risk appetite this week. On the economic data front on Wednesday, according to the U.S. Bureau of Labor Statistics, the U.S. Export Price Index fell 0.1% in December, while the U.S. Import Price Index rose 0.1%. The expected readings were 0.3% and 0.4%, respectively. The market is looking forward to the release of the U.S. Producer Price Index and initial jobless claims data at 8:30 AM EST on Thursday.
The CBOE Volatility Index (or VIX) measures uncertainty in the market. It fell 2.58% to 9.82 on Wednesday. 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 on Wednesday, the tech-heavy NASDAQ Composite Index broke a six-day gaining streak. The NASDAQ Composite fell 0.14% on January 10 and closed the day at 7,153.57. The Dow Jones Industrial Average closed the day at 25,369.13—a fall of 0.07%.
In the next part, we’ll discuss the S&P 500’s top gainers on January 10.