June 22 – 26, 2020 Recap
Second Weekly Selloff Since Mid-May
U.S. equity averages fell sharply lower on Friday to end at two-week lows amid a resurgence of daily COVID-19 infection rates that threaten to halt state-specific plans to fully reopen businesses. Wall Street was also digesting mixed results of the Federal Reserve’s annual bank stress tests to maintain adequate capital under hypothetical adverse conditions. Moreover, the Fed ordered that large banks halt any plans to increase dividends and share buybacks.
For the week, the Dow Industrials lost 856 points (-3.31%), the S&P 500 slid 2.86%, and the Nasdaq Composite fell the least, down 1.90%. Through Friday, the benchmark S&P 500 widened its gap from February all-time highs to 10.50% and was down 5.96% year-to-date (YTD).
The Weekly Recap is published by Cetera Investment Management LLC, an SEC registered adviser owned by Cetera Financial Group. Cetera Investment Management provides market perspectives, portfolio guidance, model management, and other investment advice to its affiliated broker-dealers, dually registered broker-dealers and registered investment advisers.