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Stock Market News: S&P 500 Gains, Reducing Week's Losses
The Nasdaq and Dow also gained.
Last Updated:
Aug. 9, 2024 at 8:46 PM EDT
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Stocks picked up steam Friday afternoon, with the S&P 500 gaining for the session and nearly breaking even for the week.
The Dow and Nasdaq also ended the week with modest declines.
Markets been volatile, beginning with a dramatic selloff Monday. But stocks recovered, and on Thursday, the benchmark index marked its best day since early 2022.
Yesterday's gains were driven by a lower-than-expected tally of weekly jobless claims. While normally not a market-moving datapoint, recent worries about the economy have market participants grasping for any updates that counter concerns about a recession.
The CBOE Volatility Index, which surged to 65.73 on Monday, was back down to 21.14 on Friday.
The next big test for markets will come next week, when more economic data are due, including reports on inflation, producer prices, and retail sales.
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The S&P 500 nearly dug out of the deep hole where it began the week, as cooler heads prevailed.
The S&P 500 rose 0.5% on Friday, hovering just about two points below where it finished last week. The Dow Jones Industrial Average was up 51 points, or 0.1%. The Nasdaq Composite was up 0.5%. The Dow and Nasdaq also posted modest weekly declines.
The Nasdaq 100 rose nearly 0.4% this week after trading down as much as 5.5% at its low earlier in the week. That's its biggest comeback from a weekly low since Feb. 25, 2022, according to Dow Jones Market Data.
It was a rough week. On Monday, the S&P 500 fell 3%, its worst daily decline since 2022. Fears about softening economic data and whether the Federal Reserve is behind the curve on interest rate cuts sent volatility spiking and stocks sinking.
The Japanese yen also surged that day, which had implications for traders who borrowed at low rates in the currency to invest in higher-yielding assets.
The CBOE Volatility Index, which flew to 65.73 during Monday’s selloff, was back down around 20 today.
Market participants aren’t necessarily done worrying about the economy, but the consensus seems to be Monday’s steep selloff was overblown. Whether the market is due for another drop or a rally higher depends on the data ahead.
The next big event will likely be Wednesday, when the Labor Department report the consumer price index for July.
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Oil futures rise for a fourth straight session and post their first weekly gain in five weeks, supported by tightening inventories, particularly in the U.S., and underlying risk premium around tensions in the Middle East.
Oil remains in recovery mode with geopolitical tensions still a positive factor "and on again off again recession fears have calmed a bit," Dennis Kissler of BOK Financial says in a note. "The negative remains the seasonal weakness that crude normally encounters in August, and while we may not see a recession in the next few months, given the latest employment data, I don't see an expanding economy coming either," he adds.
WTI settles up 0.9% at $76.84 a barrel, and Brent rises 0.6% to $79.66. The benchmarks close the week up 4.5% and 3.7%, respectively.
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Prices for gold have shown resilience to cap off a turbulent week globally, with underlying futures up 0.3% to $2,432.10 an ounce for the week despite the chaotic selling seen across markets earlier in the week.
Gold remains a strong choice for a hedge amid turbulent geopolitics and battles with inflation struggling to move forward, says Ole Hansen of SaxoBank in a note.
"We maintain a positive view on gold as a diversifier hedge against turmoil elsewhere," says Hansen. "If the Federal Reserve begins cutting rates, potentially as early as next month, interest rate-sensitive investors may return to gold via ETFs, which have seen consistent net selling since 2022."
SPDR Gold shares are up 0.3% for the day.
