Stock Market This Week (US): Earnings, jobs data drive markets this week

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Stock Market This Week (US)

The US market started the first week of August on a good note, despite tensions between US and China. The Dow ended lower by nearly 0.1%, while the S&P 500 rose around 0.4%, and the Nasdaq Composite gained 2.2%. 

US stock market this week: Stocks movement this week

The US stock market fell on Monday to start the new week and month. All major indices snapped a three-day winning streak and closed lower. The oil prices fell, and the energy sector was the biggest drag. Investors waited for labour market data later in the week.

The stock continued to fall on Tuesday as investors were worried by increased tensions between the US and China. Major indices fell nearly 1% for the day. However, Nasdaq fell only 0.16%, supported by Uber's earnings and stock rise.

The US market rallied on Wednesday after losing for the first two days of the week. Investors cheered better-than-expected economic data that helped allay recession fear. Investors shook off the growing tension between the US and China.

On Thursday, the US market remained flat, slightly on the higher end, as investors looked ahead to July's job report on Friday. WTI crude oil fell below $90 for the first time since February. Companies continued to report a good set of quarterly numbers.

Friday was a volatile trading session for investors. The July Job report was better than expected, and it cheered the market. Losses were offset by bank stocks which rose on the possibility of an interest rate hike in the coming months.

 

Key highlights of the week:

Quarterly results: Some big companies reported their June quarter earnings this week. Airbnb reported strong quarterly numbers, but the stock tanked post the result announcement. PayPal reported a strong set of numbers for the second quarter. Chinese e-commerce giant Alibaba Group reported results for its fiscal first quarter Thursday that topped Wall Street estimates.

Treasury bonds: The 2-yr note yield, which hit 2.80% earlier in the week and stood at 3.05% at one point, settled Friday’s session at 3.23%, up 33 basis points for the week. The 10-yr note yield, which hit 2.53% earlier in the week and stood at 2.70% at one point, settled Friday’s session at 2.84%, up 20 basis points for the week.

Oil prices fell: Oil prices fell this week despite a slight gain on Friday. It ended the week sharply lower as recession fears and concerns around a slowdown in demand. West Texas Intermediate crude futures, the US oil benchmark, ended the week at $89.01 per barrel. For the week, the contract tumbled 9.74% for the worst week since April 1. International benchmark Brent crude ended the week at $94.92 per barrel, for a weekly loss of 13.72%.

Job report July: Nonfarm payrolls rose for July to 528,000, and the unemployment rate was 3.5%, higher than Dow Jones estimates of 258,000 and 3.6%, respectively. Wage growth also surged, as average hourly earnings jumped 0.5% for the month and 5.2% from a year ago, higher than estimates. The unemployment rate is now back to its pre-pandemic level and tied for the lowest since 1969, though the rate for Blacks rose 0.2% to 6%.

  • What happened in the US markets this week?

  • What drove the US stock market this week?

  • What happened to oil prices this week?

  • Any important macro updates?

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