The S&P 500 Index reached an all-time high
In the week ended June 21, the broader market traded on a positive note after President Donald Trump confirmed his meeting with Chinese President Xi Jinping in Japan later this week. Both the leaders will visit Osaka, Japan, later this week to participate in the 2019 G20 Summit. In addition, the Federal Reserve’s dovish statement raised investors’ confidence and drove US stocks higher. Notably, the S&P 500 Index posted its all-time high near 2,964 on June 21.
The S&P 500 Index, the NASDAQ Composite Index, and the Dow Jones Industrial Average rose 2.2%, 3.0%, and 2.4%, respectively, last week. In the previous week, these indexes remained mixed, and the S&P 500 benchmark, the NASDAQ Composite, and the Dow Jones inched up by only 0.5%, 0.7%, and 0.4%, respectively.
Reviewing auto stocks’ performance
Following the positive trend in the broader market, auto stocks rallied last week. In the third week of June, General Motors (GM), Fiat Chrysler Automobiles (FCAU), Tesla (TSLA), and Ferrari (RACE) surged 3.5%, 4.7%, 3.2%, and 6.1%, respectively.
On a year-to-date basis, GM, Ford, Fiat Chrysler, Ferrari, and Toyota have yielded 10.5%, 30.1%, 7.2%, 63.1%, and 7.5% positive returns, respectively, as of June 24. In contrast, Tesla and Honda have lost 32.8% and 2.3%, respectively, in 2019 so far.
New developments related to the ongoing US-China trade war ahead of the Trump-Xi meeting are likely to be investors’ key focus this week. Also, investors are likely to pay close attention to Fed Chair Jerome Powell’s comments on the economy on Tuesday.