Stock Market This Week (US): Rally in Consumer and Tech stocks led the markets higher

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Stock Market This Week

Stock Market This Week (US)

The US market ended the week on a positive note this week with all major indices closing in the green. The Dow closing out the week is nearly 2% higher. The S&P 500 advanced about 2.6%, and the Nasdaq up 3.3%.

US stock market this week: Stocks movement this week

The US market started the week on Monday on a positive note but lost steam in the late hours to close in red. Goldman Sachs posted earnings and revenue that easily beat expectations. Energy stocks gained in the broader market index. 

Stocks rallied on Wall Street on Tuesday, with all major indices gaining over 2% for the day. Investors are betting that stocks have reached a bottom, and as the latest round of earnings reports showed businesses are working through economic pressures better than feared in the second quarter. 

The stocks continued the upward rally fueled by a rally in tech stocks. Wednesday marked the highest closing level for the Nasdaq since June 8 – and the highest since June 9 for the Dow and the S&P 500. Bitcoin breached the $24,000 threshold for the first time in more than a month.

The stocks on US exchanges gained for the third consecutive day on Thursday as Tesla shares surged on the back of better-than-expected earnings results. Tech stocks also got a boost from a softer US dollar. 

Stocks fell on the last trading day of the week as investors digested disappointing results from Snap that sent social media shares reeling. Investors eyeing some better-than-expected results from tech companies had deliberated whether markets had finally found a bottom.

US stock market this week: Major events

Quarterly results: Goldman Sachs reported a good set of numbers for the second quarter beating the estimates - profit stood at $2.79 billion and revenue at $11.86 billion. Hasbro beats profit estimates on tabletop game demand and higher prices. Johnson & Johnson reported quarterly results that beat analysts’ estimates on strength at its pharmaceuticals unit, even as the company cut its full-year adjusted profit forecast due to a stronger dollar. 

Tesla reported revenue of $16.93 billion in Q2, below Street estimates. Netflix lost around 970,000 subscribers in Q2. The revenue increased to $7.97 billion, in line with estimates. Snap revenue increased year on year to $1.11 billion compared to $982 million in the year-ago period but missed both top and bottom lines. Snap stock fell 39% post disappointing earnings.

Treasury yields hit two-month: The benchmark 10-year US Treasury note was down to 2.73% this week, its lowest level in nearly two months. The broad tax-exempt bond market generated flat returns through most of the week and underperformed Treasuries. The 2-yr note yield fell 14 basis points for the week to 2.99%.

Bitcoin & Tesla update: Bitcoin topped $24,000 this week for the first time since mid-June. Traders took comfort from the prospect of a softer than expected rate hike from the Federal Reserve. Tesla in its earnings for Q2 said that it had sold 75% of its Bitcoin holdings. However, post the announcement, the Bitcoin price came down to $23,000 levels on Friday.

Macroeconomic update: The July NAHB Housing Market Index fell to 55 from 67, registering its biggest monthly drop on record outside of the drop seen in April 2020. Existing home sales were weaker than expected in June and declined for the fifth straight month. Initial jobless claims topped 250,000 for the first time since mid-November 2021.

  • How was Netflix's result in Q2?

  • How has the US market performed this week?

  • Why did the Bitcoin price fall this week?

  • Why did Apple shares underperform the benchmark this week?