US Stock Markets Ended July 2, 2020
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The S&P 500 index moved higher on economic optimism to end the holiday shortened week up over 4%. The index came off session highs in late trading on Thursday based on fears that a second coronavirus wave could slow down the recovery. The selloff was offset by a good jobs number that was released earlier in the day. The story of a bifurcated outlook has been a running theme in the market since the beginning of the shutdown. Despite the constant push and pull of market forces, small and mid cap companies have outperformed their large cap peers during the second quarter with the Russell 2000 returning 25% and the S&P 400 MidCap returning 23.5%, while the S&P 500 returned just under 20%. On Wednesday, Pfizer was the latest company to show results of a COVID-19 vaccine. The early trial prompted patients to produce antibodies in defense of the virus. The race to produce a vaccine has many players including AstraZeneca and Moderna as well as dozens of smaller biopharmaceutical companies and universities including Oxford. New coronavirus cases continued to rise last week with the highest daily case growth since May 9th recorded on Thursday. The record growth is a result of increased testing at the same time states begin to reopen their economies. This has prompted hot-spot states such as Texas, Florida, and California to reexamine their reopening procedures and institute new rules and mandates to combat rising cases. Some states such as Pennsylvania and Texas have followed the lead of other states mandating masks after remarks made last week by Vice President Pence and proceeded by President Trump advocating the use of masks in various situations. Looking ahead to next week, investors will look at a light economic calendar with initial jobless claims coming out on Thursday.
Posted on Monday, July 6, 2020 @ 2:52 PM

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.