US market weekly: NASDAQ hits record high as tech stock rally

US market weekly: NASDAQ hits record high as tech stock rally

Last updated: 20 Nov, 2021 | 10:21 am

US market weekly: NASDAQ hits record high as tech stock rally

Stocks traded mixed on Monday as investors monitored upbeat economic data out of China and awaited key retail sales and earnings results from major U.S. companies later this week. All the three major indexes ended in negative territory.

Stocks gained on Tuesday, with traders digesting key new economic data on the state of the consumer after a couple of major retailers topped quarterly earnings results. 

U.S. stocks closed lower on Wednesday on growing fears over inflation and supply chain concerns amid a slew of earnings reports from a batch of big-box retailers. Tesla shares bucked the trend of the market and extended gains, after jumping 4% on Tuesday.

U.S. stocks closed Thursday's session mixed, with technology and retail shares leading the S&P 500 and Nasdaq higher while economic data pointed to a recovering labor market. 

Stocks ended Friday's session weighed by growing concerns over nationwide COVID-19 lockdowns in Europe that raised fears about new restrictions beyond the continent, which pressured blue chip stocks, oil and the broader market.

Weekly market stats with IND

Let’s see the major developments during the week:

Investors sit tight for new Fed chair announcement: Investors seemed to be on the lookout for the announcement of the next Federal Reserve Chair—in particular, whether President Joe Biden would reappoint current Chair Jerome Powell or instead promote Fed Governor Lael Brainard. While it seemed Powell’s renomination was the most likely outcome, the growing chance of Brainard’s appointment may have weighed on financials shares by lowering interest rate expectations and, therefore, banks’ lending margins. Some also believe that Brainard would pursue more stringent bank regulations.

Nasdaq hits record high: The major indexes ended the week mixed as investors weighed strong economic and profits data against inflation fears, ongoing supply strains, and a rise in coronavirus infections in some regions. Growth stocks handily outpaced value stocks, helping lift the Nasdaq Composite to another record intraday high on Friday. Several signs that the economic expansion was regaining momentum seemed to support sentiment early in the week. On Tuesday, the Commerce Department reported that retail sales jumped 1.7% in October, the biggest gain since March. Inflation was partly behind the increase—sales at gas stations rose 3.9%, for example—but early holiday shopping also appeared to be at work. Industrial production in October also rose much more than expected (1.6% versus around 0.7%).

Heavy corporate bond issuance: The primary calendar was active in the investment-grade corporate bond market, with the level of new issuance surpassing weekly expectations. In general, the deals were met with adequate demand. However, as market participants absorbed the glut of supply, spreads widened in the secondary market, led by weakness in intermediate- and longer-term maturities amid rate volatility. Meanwhile, high yield bonds experienced weakness as inflation concerns and rising rates mitigated risk appetite and energy names traded lower amid the decline in oil prices.