The market showed the fifth continuous weekly gains for the Nasdaq Composite and S&P 500 indices, which finished the week higher by 3.4% and 3.3%, respectively. Both indices set new historical highs while the DJI Average changed positively for the year with a 2.6% increase. The small-cap Russell 2000 increased by 1.7%.
Financial equities were amongst the week's most prominent winners, profiting from some curve-steepening action after Federal Reserve Chair Powell sketched a shift towards a natural inflation target. Under the new structure, the Fed would allow Personal Consumption Expenditures (PCE) inflation to flow moderately exceeding 2.0% overtime to compensate for many years when it hovered under 2.0%.
The notable S&P 500 financials market sector increased by 4.4%, trailing closely behind the communication services sector with +4.8% print and information technology sector posting +4.5% gain - these index sectors are atop of the standings. However, only the utility sector showed a negative 0.7% closing.
Prominently, the latest mark on consumer confidence suggested a pessimistic market outlook. The Conference Board's CCI (Consumer Confidence Index) fell to 84.8 this month from 91.7 postings in July: this is its lowest figures since May 2014. Traders and investors were more cheerful at this time.
Walmart and Microsoft advanced more than 6.5% this week's session, bolstered by reports that the companies are pulling up to the potential acquisition of TikTok America. On that note, Facebook rose whopping 10% in a momentum trade.
On Monday Dow Jones index will look somewhat different. Honeywell, Amgen, and Salesforce will replace Pfizer, Raytheon Technologies, and Exxon Mobil before Monday's session opening. Salesforce increased a hefty 30% this week, with most of those gains befalling after its earnings report numbers posting.
The U.S. Treasury Two-year yield was stable at 0.15%, while the Ten-year yield increased nine basis points to close at 0.73%. The U.S. Dollar Index declined by 1.0% to finish at 92.32. WTI (West Texas Intermediate) crude oil futures advanced by $0.66 or 1.6% to close at $42.97/bbl.
Bitcoin is having some difficulties keeping up with the important $12,000 mark. This week, the price fell to $11,600. That’s a decrease of almost 5 percent since our last update. On Friday, Bitcoin surged slightly over two hundred U.S Dollars, but it couldn’t keep that price for long.
Eurozone’s stock market(s) continued to take the lead from their North American markets and concluded the week session with excellent gains. The Russian ruble dropped to a four-and-a-half-year low versus the Euro Dollar. Many Eurozone foreign ministers challenge Russian officials about the Russian opposition leader Alexei Navalny poisoning (here we go again).
In Asia-Pacific markets, profits at China’s industrial firms rose for a third consecutive month in July, and these marks at the swiftest pace ever since June 2018. Meantime, South Korean financial regulators declared this week that they are extending the ban on short-selling publicly listed companies until March 15, 2021.
South Korea’s KOSPI index advanced 2% for the week's session. While in Japan, the Nikkei 225 index sank on Friday session after Prime Minister Shinzo Abe's resignation news due to declining health.