S&P 500 and Nasdaq Approach Record High After Two Weeks of Recovery Rally

Barry Adams
16 Aug, 2024
New York City

Stocks struggled to advance on Friday, but market indexes are set to close higher for the week as fears of an economic slowdown subsided.

The S&P 500 index and the Nasdaq Composite edged slightly lower after strong advances in Thursday's trading. 

The recovery rally gathered momentum this week after retail sales, jobless claims, and inflation data suggested stable economic growth with low inflation. 

For the week, the Nasdaq Composite advanced 5% and the S&P 500 index has added 3%, the best weekly gain in nine months. 

Earlier in the month, a weaker-than-expected increase in payroll and a rise in weekly jobless claims sparked a global sell-off and pushed indexes into correction territory. 

Market sentiment stabilized after a string of positive economic indicators this week, proving those fears of an economic slowdown to be overblown. 

On the economic front, housing starts in July plunged 16% from a year ago to 1.238 million, housing completions increased 13.8% to 1.529 million, and building permits rose 7% to 1.396 million. 

Housing permits declined 4%, housing starts dropped 6.8%, and housing completions eased 9.8% from the previous month, respectively. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.2% to 5,531.38, the Nasdaq Composite fell 0.3% to 17,539.48, and the Russell 2000 index rose 2.2% to 2,131.50. 

The yield on 2-year Treasury notes edged higher to 4.06%, 10-year Treasury notes increased to 3.90%, and 30-year Treasury bonds inched higher to 4.15%.

WTI crude oil decreased $1.21 to $76.24 a barrel, and natural gas prices edged down 2 cents to $2.16 a thermal unit.

Gold advanced by $37.38 to $2,494.75 an ounce, and silver increased by $0.07 to $28.42. 

The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 102.67.

 

U.S. Stock Movers

Applied Materials declined 2.9% to $205.63, despite the advanced semiconductor equipment company reporting better-than-expected fiscal third-quarter earnings. 

JD.com jumped 5.6% to $28.53, and the Chinese e-commerce platform operator reported a sharp jump in net income in the second quarter despite intense price competition. 

Revenue increased 1.2% to 291.4 billion yuan, and net income soared to 92% to 12.6 billion yuan.