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Weekly Market Recap – Week Ending June 5th, 2020

What Did The Market Indexes Do?

IndexWeek Week CloseYear-to-Date
Dow Jones Industrial Average+6.8%27,111.0-3.9%
NASDAQ Composite Index+3.4%9,814.1+9.9%
S&P 500 Index+5.0%3,193.9-0.3%

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The Market Surges Again

Stocks had an incredible week. For the third week in as many weeks, the market finished on an upswing. The general sentiment is that things are picking back up in the economy, and we’re seeing a much quicker recovery than originally anticipated. In fact, on Friday, the NASDAQ set a new intraday record. The previous record was set a little more than three months ago.The Market Surges Again

You can’t help but be excited by this news. After the jobs report came out, the market pretty much skyrocketed back to higher levels. I’m still hesitant to suggest we’re out of a recession since the pandemic is far from over, but this is an excellent sign for investors.

The Dow Picks Up its Pace

The Dow Jones made a big comeback–closing nearly +7% on the week. For the past couple of months, the Dow has trailed both the S&P 500 and the NASDAQ in weekly performance. And like we saw last week, a lot of the drive came from value stocks, who are beginning to perform incredibly well after getting beaten by growth stocks most of the year.

Job Losses Are Down

The market was shocked on Friday, as the new jobs report came back and showed that 2.5 million jobs were added in May. This comes after a total of 22 million job losses between March and April, and a general sentiment of “doom and gloom.” On top of that, unemployment dropped. It was reported at 13.3% for May, which is better than the 14.7% in April, but still a dismal number that needs to come down if the economy really wants to make a strong comeback.

While the numbers are still scary, this is great news for people and the overall economy. Many of these people that were “hired” were actually furloughed workers being sent back, so it’s hard to gauge how well things are going with that asterisk in there. But again, another positive sign that things are going back to (semi) normal.

The S&P 500 is Nearing It’s Record High

Speaking of the jobs report, the news drove a massive surge in stocks on Friday afternoon. The S&P 500 regained some serious ground and is now close to getting back to par year to date. In fact, the index is up a full 43% since the third week of March. And just four months ago, before all of this happened, the S&P 500 reached a record high point. And this week, it came within 6% of that high.

Oil is Bouncing Back, Too

There have been recent expectations that major oil-producing countries would be finalizing an extension to the curbing of production through at least July. This caused oil prices to surge, reaching the highest point since the beginning of March. For context, the price of crude oil fell to about $18 a barrel toward the end of April. Not six weeks later, it went above $39 a barrel last week.

Small-Cap Stocks Still Hot

We’ve also seen this happen a few times lately, but small-cap stocks beat the broader stock market by a fairly large margin. The Russell 2000 Index (an index that tracks small-cap stocks) finished the week up more than 8%. This is just a continuation for the solid year small-caps have been having overall (comparatively, of course).

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Author Bio

Total Articles: 126
Chris has an MBA with a focus in advanced investments and has been writing about all things personal finance since 2015. He’s also built and run a digital marketing agency, focusing on content marketing, copywriting, and SEO, since 2016.

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