US market weekly: S&P 500 ends higher amid Fed tapering and upbeat macroeconomic signals

US market weekly: S&P 500 ends higher amid Fed tapering and upbeat macroeconomic signals

Last updated: 06 Nov, 2021 | 11:26 am

US market weekly: S&P 500 ends higher amid Fed tapering and upbeat macroeconomic signals

US indices started off the week on a higher note on Monday, as strong third-quarter earnings and global economic recovery have boosted investors confidence. Higher crude oil prices lifted shares of energy companies. All three major stock indexes ended in green.

US indices ended at record high on Tuesday for three consecutive days. This happened for the first time since December 2019. Moreover, investors are waiting for the outcome of the crucial Fed FOMC meeting that will end on Nov 3.

US stocks gained on Wednesday as investors digested a key monetary policy decision from the Federal Reserve, which included a formal announcement of the central bank's start to tapering its pandemic-era asset purchases. 

U.S. stock markets closed mixed on Thursday as market participants were busy analyzing the post FOMC statement of the Fed Chairman. The central bank has decided to start pulling back its stimulus effective this month. 

US indices rose on Friday, with major benchmarks rallying to fresh records as investors reacted favorably to October jobs report, which showed a better-than-expected pick-up in payroll growth and another improvement in the unemployment rate. For the week, S&P 500 ended 2% higher and Dow Jones 1.4% higher. 

Weekly market stats with IND

Let’s see the major developments during the week:

Fed announces taper: At Wednesday’s conclusion of the Fed’s policy meeting, the central bank stated that it will begin to slow its monthly bond purchases by USD 15 billion later this month and in December. By not specifying the speed of the taper beyond December, it gives Fed the flexibility to make adjustments as economic conditions evolve.

The policy statement released after the meeting and Fed Chairman Jerome Powell’s post-meeting press conference stressed that policymakers still expect the recent high inflation readings to moderate and will need to see further labor market improvement before raising rates, helping to alleviate fears about an abrupt monetary policy tightening. This seemed to put a dovish spin on the tapering announcement for stock investors, who drove equities higher following the Fed meeting.

Macroeconomics signals: Economic data released during the week showed that the economy gained strength as the wave of the delta variant eased. Factory orders increased 0.2% in September, slightly more than consensus expectations. The government’s October employment report, released on Friday morning, showed 531,000 jobs added, topping consensus estimates. The unemployment rate fell to 4.6%. The Labor Department also said that the economy gained 235,000 more jobs in August and September than it originally estimated.

Delta variant remains a concern: The spread of the delta variant appears to have gradually slowed down as economic progress is coming back on track.  An average of roughly around 70k coronavirus cases have been reported each day in the United States while the total cases have crossed the 46.2 million mark. However, to battle this, the pace of vaccination has also picked up. About 58.3% of the eligible American population (age 12 and over) are fully vaccinated and over 67.6% have received the first dose.

Oil prices drop: Oil prices dropped from their recent highs after Biden administration officials mentioned the possibility of releasing supply from the strategic petroleum reserve. OPEC+, will rollover its August program to gradually increase oil production by 400,000 barrels per day each month. The oil benchmark reduced 2.5% in the week to close at $81.5/ barrel.

Also read our other interesting articles:

We are a SEBI registered investement advisor
Mutual Funds watchlist
aditya birla sun life flexi cap fund growth direct plan|ABSL low duration fund direct growth|axis bluechip fund direct growth|axis capital builder fund series 4|axis balanced advantage fund direct growth|axis equity saver fund direct growth|axis multicap fund direct growth|axis global innovation fund of fund direct growth|axis long term equity fund growth NAV|axis quant fund direct growth|axis small cap fund direct growth|axis value fund direct growth|baroda dynamic equity fund direct growth|BOI AXA bluechip fund|canara robeco flexi cap fund direct growth|canara robeco small cap fund direct growth|canara robeco value fund direct growth|DSP quant fund direct|franklin india smaller companies fund direct growth|HDFC arbitrage fund direct growth|HDFC balanced advantage fund direct growth|HDFC developed world index fund NAV|HDFC flexi cap fund direct growth|HDFC housing opportunities fund direct growth|HDFC hybrid equity fund direct growth|HDFC nifty 50 index fund|HDFC index fund sensex plan|HDFC mid cap opportunities direct plan growth|HDFC multi asset fund direct growth|HDFC small cap fund direct growth|HDFC top 100 fund direct growth|HSBC midcap fund direct growth|ICICI prudential balanced advantage fund|ICICI bluechip fund direct growth NAV|ICICI prudential commodities fund direct plan growth|ICICI nasdaq 100 fund direct growth|ICICI nifty next 50 index fund direct growth|ICICI small cap fund direct growth|ICICI prudential technology direct plan growth calculator|ICICI ultra short term fund direct growth|IDBI india top 100 equity fund direct growth|IDBI small cap fund direct growth|idfc us equity fund of fund direct growth|kotak short term fund direct growth|kotak emerging equity fund direct growth|kotak multicap fund direct growth|kotak global innovation fund of fund NAV|kotak gold fund direct growth|kotak savings fund direct growth|kotak small cap fund direct growth|L&T emerging businesses fund direct growth|mirae asset large cap fund direct growth|mirae asset midcap fund|motilal oswal nasdaq 100 fund of fund|navi nifty 50 index fund direct growth|nippon india banking and financial services fund direct growth|nippon banking fund direct|nippon india flexi cap fund NAV|nippon india large cap fund direct growth|nippon india pharma fund direct growth|nippon india small cap fund direct growth|PGIM small cap fund direct growth|quant flexi cap fund direct growth|quant infrastructure fund direct growth|quant tax plan direct plan growth|SBI bluechip fund direct growth|SBI corporate bond fund direct growth|SBI equity minimum variance fund direct growth|SBI flexi cap fund|SBI magnum children's benefit fund investment direct plan|SBI nifty index fund direct growth|SBI small cap fund direct growth|SBI technology opportunities fund direct growth|tata banking and financial services fund direct plan growth|tata business cycle fund|tata technology fund direct growth|tata equity pe fund direct growth|tata ethical fund direct growth NAV|tata focused fund direct growth|tata index fund nifty direct plan|tata india tax savings fund direct plan growth|UTI focused equity fund direct growth|UTI nifty index fund direct growth NAV|UTI nifty 50 index fund direct growth