September 21 - 25, 2020 Recap
Recovery Theme Falters…Again
U.S. stocks reversed losses Friday amid unconfirmed reports that lawmakers were reviving plans for a second fiscal stimulus deal, but gains were not enough for the S&P 500 and Dow Industrials to avoid their fourth weekly declines – their longest losing streaks since August 2019. For the Nasdaq Composite, a late-week surge in tech stocks lifted the index from its lows of the week to break a three-week slide. Yet broader recovery-themed stocks faltered, with airlines slumping to June lows and small cap equities trading below their 200-day moving average. With the end of the month just days away, the S&P 500 is poised for its worst monthly performance since at least November 2008.
For the week, the S&P 500 declined 0.61%, the tech-heavy Nasdaq Composite rebounded 1.13%, and the Dow Jones Industrial Average slumped 1.75%. For September, the S&P 500 remains on track to be the first month with negative returns since March.
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