Market Recap (8/11/24)
Market Recap of the Week of Aug 5, 2024 - Aug 9, 2024
Source: Apple Stocks Application
Overall Market Trends:
Last week, the stock market opened down tremendously but rebounded as the week progressed. The New York Stock Exchange Composite (NYSE) was the only index to finish the week positive, gaining 106 points (+0.58%). On the other hand, the S&P 500 lost 1 point (-0.03%), the NASDAQ Composite fell 28 points (-0.17%), and the Dow Jones Industrial Average declined 224 points (-0.56%). This was largely due to recession fears being counteracted by economic data.
Worries from last week regarding the state of the US economy caused a global sell-off. It started Sunday night with the Nikkei 225, a Japanese market index, falling over 12% as investors had their first chance at reacting to last Friday, August 2’s job report. Many other markets followed Japan’s footsteps in continuing the global sell-off: Bitcoin fell from $62,000 on Friday to $54,000 on Monday, the European stock market index, Stoxx 600, fell 2.2%, and treasury yields plummeted to 3.78% as investors invaded the bond market for safety, running from the highly volatile stock market. To make matters worse, the US stock market opened Monday morning down a total of over $1 trillion and the NASDAQ Down over 6%. While the market rebounded as the day progressed, stocks finished the day down: the Dow lost 1033 points (-2.6%), the NADSAQ plunged 3.4%, the S&P 500 fell 3%, and the NYSE Composite declined 2.4%. The volatility index (CBOE) reached heights last seen during Covid.
This rebound continued into Tuesday’s trading session as both the Dow and NASDAQ finished up just over 1%, snapping the 3-day losing streak. The Nikkei 225 soared over 10% overnight helping raise sentiment in the US market. Nvidia and Meta Platforms led the way both rising just under 4%.
The market pulled back on Wednesday as it tried to overcome losses experienced on Monday. During Wednesday's trading session, Super Micro Computer fell 20% as the company released poor earning results and announced a 10-1 stock split. Nvidia fell 5.1% and Tesla shares declined roughly 4.4%.
Markets surged on Thursday as weekly jobless claims came in less than expected, easing investor worries about a global recession. The S&P 500 rose 2.3%, the Dow Jones increased 1.76%, and the NASDAQ rose nearly 3% on Thursday. Eli Lilly, a pharmaceutical giant, rose 9.5% as the company released stronger-than-expected earnings and a positive outlook for the company's upcoming drugs.
Sentiment caused by Thursday’s jobless claims report continued into Friday’s trading session, causing markets to continue to rise and nearly wiping out losses felt on Monday.
Past Earnings Report:
Looking Towards the Future
Upcoming Important Economic Events:
Tuesday: Producer Price Index (PPI); Core PPI
Wednesday: Consumer Price Index (CPI); Core CPI
Thursday: Initial jobless claims; Empire State Manufacturing Survey; Import Price Index; Industrial Production; Capacity Utilization; Business Inventories
Friday: Consumer sentiment (prelim);
Future Earnings Reports: