A jump in COVID-19 cases dampened investor enthusiasm last week, sending stock prices lower on worries that rising infections could derail the economic recovery.
The Dow Jones Industrial Average slumped 3.31%, while the Standard & Poor’s 500 retreated 2.86%. The NasdaqComposite Index lost 1.90% for the week. The MSCI EAFE Index, which tracks developed stock markets overseas, declined 1.28%.1,2,3
A Rocky Week for Stocks
In Thursday’s trading, stocks opened lower but then rallied late in the day on no apparent news. Stocks resumed their decline on Friday, falling on news that Texas and Florida were rolling back some reopening plans amid rising COVID-19 infections.5
While traders understood that reopening and increased testing would lead to an uptick in reported cases, the numbers were a bit unsettling. The week’s action reminded investors that the market remains tightly tethered to COVID-19 developments.
THIS WEEK: KEY ECONOMIC DATA
Source: Econoday, June 26, 2020
THIS WEEK: COMPANIES REPORTING EARNINGS
Source: Zacks, June 26, 2020
1. The Wall Street Journal, June 26, 2020
2. The Wall Street Journal, June 26, 2020
3. The Wall Street Journal, June 26, 2020
4. Marketwatch.com, June 23, 2020
5. FoxBusiness.com, June 26, 2020
6. The Wall Street Journal, June 25, 2020
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Weekly Market Insights: Rise in Cases Inspires Turbulence
June 30, 2020