It’s beginning to feel like an old hat, but once again, volatility reigned. Traders continued to send stocks both higher and lower over the week as a combination of good and bad news persisted. Much of that news continued to focus on the state of the economy and the coronavirus pandemic.
Over the last few weeks, the slowing of new cases due to social distancing and other protective orders has brought optimism to the markets. However, this encouragement brought a surge of new cases in several states as the U.S. begins to fully open up, which created worries throughout the week that the economy may not be ready to be fully opened.
On the positive side, economic data and the Federal Reserve were accommodative. New moves by the central bank, as well as improved data, helped lift traders’ spirits. Critical measures of retail sales and manufacturing activity have also moved the markets higher. At the same time, the earnings picture has been a bit better as well – all of which helped lift the mood on the street.
Nonetheless, the continued rise of COVID-19 cases, civil unrest and the burgeoning renewal of the trade war with China all pressured stocks during the week. This caused the markets to ebb and flow.
In the end, stocks managed to finish a little higher than where they started.
Be sure to check out our previous Wrap here when investors witnessed a fading rally.
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