FINANCIAL STOCK MARKET  WEEK Market Week: July 8, 2024 

"The stock market fared quite nicely during the Fourth of July week" by Wendy Nelson 

The Markets (as of market close July 5, 2024)

The stock market fared quite nicely during the Fourth of July week.  Each of the benchmark indexes listed here posted gains, with the Nasdaq and the S&P 500 reaching record highs a few times during the week.  Only the small caps of the Russell 2000 slid lower.  The June jobs report (see below) gave investors encouragement that the Fed may be inclined to cut interest rates as early as September.  Information technology, consumer discretionary, and communication services outperformed among the market sectors, while energy and health care lagged.  Ten-year Treasury yields dipped 7.0 basis points.  Crude oil prices advanced as tensions in the Middle East escalated.  Gas prices increased, while some expect prices at the pump to continue to rise.

Wall Street opened the Fourth of July week with a bang.  The Nasdaq gained 0.8% largely due to a strong performance from megacaps.  The S&P 500 and the Global Dow rose 0.3%, while the Dow ticked up 0.1%.  The small caps of the Russell 2000 fell 0.9% following its annual reconstitution, when breakpoints between large, mid, and small caps are redefined to make certain that market changes from the preceding year are reflected accurately.  This annual event often leads to one of the highest-volume trading days as investors adjust their holdings based on the updates.  Ten-year Treasury yields spiked higher, climbing 13.6 basis points to close at 4.47%.  Crude oil prices also advanced, settling at about $83.46 per barrel after gaining $1.92.  The dollar and gold prices changed marginally.

Stocks climbed higher last Tuesday as investors took encouragement from Fed Chair Jerome Powell's comments, which indicated that significant progress has been made in bringing down inflation.  However, Powell said modest economic expansion, coupled with a healthy labor market, has allowed the Fed to be patient in deciding about the next steps in its monetary policy.  By the close of trading, the Nasdaq (0.8%) and the S&P 500 (0.6%) notched new record highs. The Dow rose 0.4%, the Global Dow advanced 0.3%, and the Russell 2000 gained 0.2%.  Yields on 10-year Treasuries fell 4.3 basis points to settle at 4.43%.  Crude oil prices ticked down to $83.03 per barrel.  The dollar declined 0.2%, while gold prices were flat.

The Dow (-0.1%) was the only benchmark index listed here to close in the red last Wednesday. The Nasdaq (0.9%) and the S&P 500 (0.5%) reached record highs for the second straight day.  The Global Dow (0.6%) and the small caps of the Russell 2000 (0.1%) also closed higher.  Ten-year Treasury yields settled at 4.35%.  Crude oil prices rose to $83.88 per barrel. The dollar edged lower, while gold prices rose 1.5%.

Stocks closed out the holiday-shortened week with mixed results.  The Nasdaq (0.9%) and the S&P 500 (0.5%) closed the day at record highs, while the Dow advanced 0.2%.  The Russell 2000 (-0.4%) and the Global Dow (-0.1%) closed the day lower. Ten-year Treasury yields fell 8.3 basis points, settling at 4.27%.  Crude oil prices declined $0.63 to about $83.25 per barrel. The dollar fell for the fourth straight session, while gold prices advanced 1.2%.

• LAST WEEK'S ECONOMIC NEWS
• EYE ON THE WEEK AHEAD

Wendy Nelson, CEO of Wind River Wealth Advisors, aims to provide beneficial investment management, retirement planning, financial planning, asset management, and portfolio management to protect your money with knowledgeable strategies and plans by utilizing a personal independent financial advisor.