Stock prices drifted higher in an otherwise quiet news week, as a slowdown in new COVID-19 cases outweighed a Congressional impasse on a new fiscal-spending measure.
The Dow Jones Industrial Average gained 1.81%, while the Standard & Poor’s 500 rose by 0.64%. The Nasdaq Composite Index inched 0.08% higher for the week. The MSCI EAFE Index, which tracks developed stock markets overseas, advanced 3.11%.1,2,3
S&P 500 Nears All-Time High
The industrial and financial sectors saw solid gains, while technology stocks, after slipping earlier in the week, found some footing as the week came to a close.
The S&P 500 Index flirted all week with setting a new record high. At one point on Thursday, it traded above its February 2020 record close before closing slightly lower. Stocks treaded water into Friday, as Congress recessed for the summer.5
Consumer Prices Jump
The Fed does not appear concerned about these recent monthly price jumps. It remains more worried about disinflation. However, if inflation continues to pick up, the Fed may be forced to reconsider its COVID-19 monetary policy.8
THIS WEEK: KEY ECONOMIC DATA
Source: Econoday, August 14, 2020
THIS WEEK: COMPANIES REPORTING EARNINGS
Source: Zacks, August 14, 2020
1. The Wall Street Journal, August 14, 2020
2. The Wall Street Journal, August 14, 2020
3. The Wall Street Journal, August 14, 2020
4. CNBC, August 12, 2020
5. CNBC, August 13, 2020
6. The Wall Street Journal, August 12, 2020
7. The Wall Street Journal, August 12, 2020
8. CNBC, August 12, 2020
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