Last updated: 10 Jul, 2021 | 08:34 am
US markets were closed on Monday in observance of Independence Day. S&P 500 ended its 7-day winning streak on Tuesday, on concerns about economic outlook due to Covid-19 variants.
The index recouped losses and rose to a fresh record high on Wednesday, on the back of a steep fall in treasury yields. The yield on the 10-year Treasury note fell over 5% to 1.253% on Wednesday, reflecting investors’ anxiety about the economic outlook. Trusted large-cap tech stocks were the leaders in the rally.
Wall Street stocks declined on Thursday, as the perspectives seemed to shift, with equity investors worrying that falling yields also signaled expectations for slowing global growth. However, the index recovered on the final day of the week, pushing the major indexes toward a third consecutive week of gains. S&P 500 ended the week with gains of 0.4%.
Weekly US market stats with IND
Let’s see the major developments during the week:
Treasury yields decline: The week saw a huge decline in treasury yields as investors reacted to a lot of economic data which surprised on the downside. The 10-year Treasury yields sank to 1.25% on Thursday, before partially recouping to end the week at 1.36%. Yields fell after FoMC minutes revealed that Fed is not yet eager to begin tapering the bond purchases.
Delta variant poses concerns: The highly transmissible delta variant virus has now spread to all 50 states in the US. It is also more dominant than the previous variants. According to reports, more than 50% of all new infections are due to this new variant, a rise of 5 times from the previous week. The global spread of the highly infectious delta variant of the coronavirus also appeared to dim the outlook, especially for travel-related companies.
Oil prices decline: Oil prices fell most days in the week amid uncertainty about supplies, as the OPEC+ meet to discuss the plan on supplies got postponed. OPEC was supposed to meet in the week to decide on easing output curbs. Brent prices closed 0.6% lower in the week.
Check out our other analysis on important market developments!
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