S&P 500 Breaks Six-Week Winning Streak
S&P 500 Breaks Six-Week Winning Streak
The stock market faced some selling pressure after six straight weeks of gains for the S&P 500.
Last Friday's close had the S&P 500 and Dow Jones Industrial Average at record highs, so normal consolidation was part of the story this week.
The S&P 500 closed 1.0% lower this week and the Dow Jones Industrial Average sank 2.7%. The profit-taking activity was fueled by rising market rates. The 10-yr yield settled 16 basis points higher this week at 4.23% and the 2-yr yield settled 15 basis points higher this week at 4.10%. This week's selling in the Treasury market expanded the 2s10s spread by a basis points to 13 bps.
The Nasdaq Composite managed to settle 0.2% higher for the week, benefitting from buying activity in mega caps and semiconductor shares.
Some of the buying in mega cap shares was related to the huge jump in Tesla (TSLA) following impressive Q3 earnings and 2025 vehicle growth forecast.
Other names that reported earnings included blue chip companies like Verizon (VZ), 3M (MMM), GE Aerospace (GE), Lockheed Martin (LMT), General Motors (GM), IBM (IBM), and Honeywell (HON).
- Nasdaq Composite: +0.2% for the week / +23.4% YTD
- S&P 500: -1.0% for the week / +21.8% YTD
- Dow Jones Industrial Average: -2.7% for the week / +11.7% YTD
- S&P Midcap 400: -2.8% for the week / +11.7% YTD
- Russell 2000: -3.0% for the week / +8.9% YTD
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Data and rates used were indicative of market conditions as of the date shown and compiled by Briefing.com. Opinions, estimates, forecasts, and statements of financial market trends are based on current market conditions and are subject to change without notice. References to specific securities, asset classes and financial markets are for illustrative purposes only and do not constitute a solicitation, offer, or recommendation to purchase or sell a security. S&P 500 Index is a market index generally considered representative of the stock market as a whole. The index focuses on the large-cap segment of the U.S. equities market. Each company’s security affects the index in proportion to its market value. NASDAQ Composite Index is a market value-weighted index that measures all NASDAQ domestic and non-U.S. based common stocks listed on the NASDAQ stock market. Dow Jones Industrial Average is a widely used indicator of the overall condition of the stock market, a price-weighted average of 30 actively traded blue chip stocks, primarily industrials, but also includes financial, leisure and other service-oriented firms. Russell 2000 Index measures the performance of the smallest 2,000 companies in the Russell 3000 Index of the 3,000 largest U.S. companies in terms of market capitalization. MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.
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7232591.1 (Exp. 01/26)