Weekly Market Recap – Week Ending June 5th, 2020
What Did The Market Indexes Do?
Index Week Week Close Year-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%
Deal of the Day: Chase is now offering a $200 cash bonus when opening a Total Checking Account. No minimum deposit and all deposits are FDIC insured up to the $250,000 per depositor maximum.
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).
Follow our weekly market updates and Coronavirus-related coverage here.