Market resilience shone through this week as the US stock market powered through and ended the week on a high note. As geopolitical tensions eased and the estimated damage caused by Harvey and Irma was far less than dreaded, the markets have emerged from a month-long slump. With these worries out of the way, investors were once again able to focus on the basics – a relatively stable economy and overall projected growth for the industry that is expected to last through to at least 2019.
The US stocks went up to record highs on Friday before markets closed for the week. The markets got a big push from the telecommunications and banking sectors as well as huge jumps from the tech sector.
The S&P 500 broke records again by pushing past the 2,500 barrier on Friday, going up 0.18% to close the day at 2,500.23 points. This came shortly after the index broke records four months ago to cross 2400. This new high now takes the S&P 500 index growth to 12% for the year. The index’s IT segment (.SPLRCT) went up by 0.3%, attributed to NVidia’s massive 6.3% jump on Friday following extremely favorable reviews by Evercore’s analyst CJ Muse. Apple also contributed to the rise by gaining back 1.01% after it fell after the new iPhone launches on September 12.
NVidia’s fantastic performance also helped the semiconductor index (SOX) which surged 1.71% (which was its fifth day of straight gains). Advanced Micro Devices (AMD) also made gains of 2.1%. NVidia and AMD were the biggest contributors in the S&P 500 index.
Oracle was one of the few companies to register losses, dropping hugely by 7.7%, it biggest drop in four years after it announced less than favorable forecasts for the 2nd fiscal quarter of 2018.
The telecom giants played their part in helping Wall Street set records on Friday. AT&T (TN) went up by 2.15% and Verizon (VZN) increased by 1.44%.
Economic data wasn’t the best in the past week, but that didn’t seem to affect the US stock market too much. Investors attributed the hike in retail sales (which went up by 0.2%) and the drop in industrial production (industrial production dropped by 0.9%) to the impact of Harvey and Irma.
The Dow Jones Industrial Average (DJIA) was not to be left behind. The index also broke records on Friday after it went up 0.29% to reach 22,268.34 points. This record marks the index’s fourth record for the year. Friday was also the Dow’s 6th straight day of gains. According to FactSet data, this was the Dow’s best week since the December 9 week last year.
The Nasdaq Composite Index (IXIC) also made modest gain by increasing 0.3% to end the week at 6,448.47. The tech-heavy index marked a 1.4% gain for the week.
In the airlines sector, Boeing (BAN) also went up by 1.53% to reach a record high. This was also triggered by a favorable review and a hike in price targets for the company’s stocks by Canaccord Genuity.
Gold, the safe haven buy, which had been rising in response to investor nervousness caused by geopolitical and environmental tension, also finally subsided and dropped by 2% as markets stabilized.
The 10-year US Treasury notes were at 2.2005%.
US Crude oil prices did not change and stayed at $49.89 per barrel but the Brent rose by 15 cents to close at $55.51 per barrel.
All in all, about 8.5 billion shares were traded in US stocks this week, up from the 20-day average of 5.9 billion shares.