Market Recap: U.S. stocks recover to end Friday at record highs

Moomoo Recap US wrote a column · Jul 10, 2021 08:28

Market Recap: U.S. stocks recover to end Friday at record highs

Hey moomooers,
Here is the latest Market Recap for you.

All three major averages notched record closes on Friday, rebounding from the previous session’s losses over concerns of a slowdown in global economic growth.

Stocks to watch: $JPMorgan (JPM.US)$, $Goldman Sachs (GS.US)$, $Bank of America (BAC.US)$. $American Airlines (AAL.US)$, $Norwegian Cruise (NCLH.US)$, etc.

Market Snapshot

Major U.S. stock benchmarks booked a third straight week of gains to end Friday at all-time highs, staging a recovery from the previous session that was marked by doubts about global economic growth in the public health crisis.

The $Dow Jones Industrial Average (.DJI.US)$rose 448.23 points, or 1.3%, to a record close of 34,870.16. The $S&P 500 Index (.SPX.US)$bounced by about 1.1%, closing at an all-time high of 4,369.55. The technology-heavy $Nasdaq Composite Index (.IXIC.US)$rose just shy of 1% to close at a record of 14,701.92.

All three major averages notched record closes on Friday, rebounding from the previous session’s losses over concerns of a slowdown in global economic growth.

Source: Bloomberg

What to drove the market?

Bullishness was back in force on Wall Street Friday.

The stock market staged an impressive comeback after equities slumped Thursday on worries over the global growth outlook as some countries struggle with the public health crisis. The concerns about the public health crisis were blamed — along with myriad other factors — for a U.S. Treasury debt rally that sent long-term yields down to their lowest levels since February this week.

Falling yields

Falling yields should be a positive for stocks, argued Ipek Ozkardeskaya, senior analyst at Swissquote, in a Friday note.Falling yields hint that inflation and the potential for a more aggressive than expected withdrawal of easy money policies by the Federal Reserve are a fading cause for concern, she said.

What stocks to watch

$JPMorgan (JPM.US)$, $Goldman Sachs (GS.US)$, $Bank of America (BAC.US)$— Bank stocks led the market comeback on Friday as bond yields rebounded. JPMorgan, Goldman Sachs and Bank of America climbed more than 3% each as the 10-year Treasury yield bounced 7.2 basis points to 1.36%. The benchmark yield tumbled to 1.25% at its low on Thursday, intensifying concerns about an economic slowdown.

$American Airlines (AAL.US)$, $United Airlines (UAL.US)$— Airline stocks rebounded on Friday after losses associated with the highly infectious delta Covid variant fueled worries about the global economic comeback. Shares of American Airlines, United Airline,Southwest Airlines and Alaska Air Group all rose more than 2%.

$Carnival (CCL.US)$, $Norwegian Cruise (NCLH.US)$, $Royal Caribbean (RCL.US)$— Shares of reopening plays like cruise operators rose on Fridays, clawing back losses from the previous session. Carnival climbed about 2.3%, while Norwegian Cruise Line popped 2.8%. Royal Caribbean rallied 3.6%.
Source: Dow Jones, CNBC

Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more