Stocks Dropped Last Week But Data Confirmed Economic Recovery
Published Friday, September 18, 2020, 8:30 PM EST
Stocks dropped 1.1% today and closed slightly lower from a week ago. It was the third consecutive week that the Standard & Poor's 500 declined, as the U.S. economy's Covid recovery continued but at a slightly less robust pace than had been expected.
The U.S. economy's recovery from the infection is a bit slower and more difficult than had been expected, but the recovery is underway, according to the new data.
Retail sales, housing starts, and the leading economic indicator index all came in this past week slightly lower than expected. However, they all confirmed the economy is recovering, and that's the main concern if you're investing for retirement, income, or to build wealth for the next generation.
The Standard & Poor's 500 stock index closed down 1.1% Friday at 3,319.47, a loss of -0.64% from a week ago, but +38.94% higher than its March 23rd bear market low.
This marked the third straight week of declines in the S&P 500, and that's the first time this year that has happened, according to Bloomberg Financial News.
The S&P 500 broke its all-time high on September 2, due to a surge in the FAANGM -- Facebook, Apple, Amazon, Netflix, Google and Microsoft -- but they've declined in the past few weeks.
Stock prices have swung wildly since the coronavirus crisis started in March and volatility is to be expected in the months ahead as uncertainty about the shape of the recovery is unlikely to go away.
The Conference Board Leading Economic Index® (LEI) components: 1) average weekly hours worked, manufacturing; 2) average weekly initial unemployment claims; 3) manufacturers' new orders – consumer goods and materials; 4) ISM index of new orders; 5) manufacturers' new orders, nondefense capital goods; 6) building permits – new private housing units; 7) stock prices, S&P 500; 8) Leading Credit Index™; 9) interest rate spread; 10-year Treasury less fed funds; 10) index of consumer expectations.,
The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is a market-value weighted index with each stock's weight proportionate to its market value. Index returns do not include fees or expenses. Investing involves risk, including the loss of principal, and past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted.
Nothing contained herein is to be considered a solicitation, research material, an investment recommendation or advice of any kind., and it is subject to change without notice. Any investments or strategies referenced herein do not account for the investment objectives, financial situation or needs of any specific person. The material represents an assessment of financial, economics tax law, and proposals for new taxes, at a specific point in time and is not a guarantee of future results.
This material represents an assessment of the market and economic environment at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions.
This article was written by a professional financial journalist for Taylor Wealth Management and is not intended as legal or investment advice.
- Despite Bank Fears And A Fed Hike, Stocks Climbed For The Week
- Bank Panic And Strong 1Q '23 Economic Growth
- Mixed Economic Signals And A Bank Failure
- Service Sector Remained Strong In February, Soothing Investors For Now
- Inflation Rose In January, Indicating Tight Monetary Policy May Continue Into 2024
- Amid Divergent Data, Here's What To Know
- Optimistic Again, Will A Fed Algorithm Be Right Again?
- The Bipolar Economy Of 2023
- On Wednesday, We’ll Know If The Federal Reserve Will End Inflation By Causing A Recession
- Technology Drove S&P 500 1.9% Higher Friday, But Look At Tech's Terrible 2022 Loss
- Here What To Know To Invest Wisely
- Prudence Requires Positioning Portfolios For An Economic Expansion