Last updated: 21 Aug, 2021 | 06:58 am
US markets started off the week on a strong note on Monday, continuing its record rally from the previous week. Investors awaited US retail sales data, to be released the next day. The index declined on Tuesday, as concerns around slowing economic growth and disappointing retail sales data dampened sentiments.
Wall Street stocks continued to decline on Wednesday, after U.S. Federal Reserve minutes indicated that the Fed may begin to start tapering bond repurchases, putting an end to its pandemic-driven easy monetary policy.
The S&P 500 rose Thursday, stabilizing after two days of declines. Gains in technology and consumer-staples shares helped the S&P 500 to post gains, despite losses in economically sensitive groups like energy, materials and financials. The index extended gains on Friday, as investors weighed Dallas Federal Reserve President comments that the central bank might favor delaying tapering if the delta variant takes a deeper toll on the economy. For the week, S&P 500 declined 0.6% while the Dow Jones lost 1.1%.
Weekly US market stats with IND
Let’s see the major developments during the week
Hawkish comments from US Fed: Federal Reserve minutes hinted that the central bank could start slowing the pace of bond purchases later this year, putting an end to its pandemic-driven easy monetary policy. The Fed said that substantial progress had been made toward their inflation goal, while gains had been made toward their employment objective. However, towards the end of the week, Dallas Federal Reserve President Robert Kaplan suggested that he might favor delaying tapering if the delta variant takes a deeper toll on the economy.
Retail sales come in below-expectations: Worries that growth might be peaking also took a toll on sentiment, as macro data points disappointed during the week. The Commerce Department reported that retail sales slumped 1.1% in July, after recording a growth of 0.6% in the previous month. Much of the decline was concentrated in auto sales, which fell 3.9% as consumers balked at high prices and automakers struggled with the ongoing global semiconductor chip shortage and other supply issues. Further, the rising cases due to the delta variant also added to concerns.
Crude oil prices plunge: Crude oil prices declined heavily during the week, on the back of demand worries due to surging cases of COVID-19 Delta variant amid a stronger US Dollar. Crude Oil prices ended the week 9.6% lower, pressured by slowing growth in China, uneven recovery in the US, and a selloff in equity indices post FOMC minutes.
Check out our other analysis on important market developments!
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