The S&P 500 finished the week flat despite more positive news on vaccine developments. Small caps continued to perform well and gained 1.9% on the week. Value outpaced growth by 1.3% on the week and now more than 6% over the last two weeks.
S&P 500 one-week performance was strong. Over the period, the index was up 3.81%. This performance was led by Energy, up 14.29%, and Financials, up 10.20%. These are the two sectors which have struggled the most this year.
The markets were positioned for this to be one of the highest-volatility elections ever. As of this writing, there are several states extremely close in their counts. Scrutiny on the ballot counting process added fuel to the fire, and it will likely be a lengthy process before a conclusion is reached.
We continue to navigate our way through earnings season this week. With a little over 50% of S&P 500 companies reporting, it looks like things were not as bad as we thought they would be.
Equity markets drifted lower as stimulus talks continue to be pushed out. Plenty of headlines and no action has whipped the market around for most of the month. For the week, the S&P 500 was down 1.5%.
Markets have traded off in the last few days after strong performance toward the end of last week. The turn comes as uncertainty increases around the timing of stimulus relief and a global increase in COVID-19 cases.
News headlines whipped the market around, but equities found a way to finish higher on the week. The S&P 500 advanced 1.7% led by a 6.9% jump in small caps.
This week saw a strengthening housing market. In August, there were 1.011 million new home sales, which is 4.8% higher than in July. The expectation was for sales of 887,500 new homes.
Equities sold off again this week, taking their cue from weakness that began during the Federal Open Market Committee (FOMC) press conference. The S&P 500 was down 4.4%, while emerging market equities fell 3.5%.
It has been another week with no resolution in congressional stimulus discussions. The positive economic numbers we see may have led to a false assumption the economy is on better footing than it really is.