After gaining for two consecutive trading weeks, the S&P 500 (SPX-INDEX) started this week on a stronger note. On February 26, 2018, the S&P 500 opened the day higher and rallied to more than three-week high price levels. Ten out of 11 major S&P 500 sectors advanced on Monday. Strength in the telecom services and IT sector supported the market, while weakness in the utilities sector limited the market gains.
The S&P 500 rebounded for two weeks to recover from the global market sell-off due to concerns about the pace of interest rate hikes. Following the US market rally on Friday, the global market sentiment improved and all of the major Asian and European markets started the week on a stronger note. The market sentiment was strong at the beginning of this week. Bond yields stabilized and made room for the equity market to recover. The market is looking forward to the first testimony of newly appointed Fed Chairman Jerome Powell. On the economic data front, according to the Census Bureau, US new home sales declined to 593,000 in January.
The CBOE Volatility Index (or VIX) measures uncertainty in the market. The index fell 4.2% to 15.8 on February 26. 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, the index has an inverse relationship with stocks and rises when the S&P 500 falls.
NASDAQ and Dow
The NASDAQ Composite Index (COMP-INDEX) and the Dow Jones Industrial Average (DJIA-INDEX) started this week on a stronger note and surged to three-week high price levels. Amid a strong rally in the technology sector, the tech-heavy NASDAQ Composite Index rallied higher on Monday. The NASDAQ Composite Index rose 1.2% and closed the day at 7,421.46. Amid strong market sentiment, the Dow Jones rallied by 400 points on Monday. The Dow Jones Industrial Average gained 1.6% and closed Wednesday at 25,709.27.
Next, we’ll discuss how the S&P 500’s top gainers performed on February 26.