Stock prices dropped last week as hopes for a fiscal stimulus bill faded and investors focused on rising COVID-19 infections, here and abroad.
The Dow Jones Industrial Average slid 6.47%, while the Standard & Poor’s 500 tumbled 5.64%. The Nasdaq Composite index lost 5.51% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, slumped 5.02%.1,2,3
A Difficult Week for Stocks
Losses accelerated mid-week on reports of rising coronavirus-related hospitalizations, along with news that Germany and France were reinstating partial shutdown restrictions.4
Stocks attempted to recover on Thursday, but took another leg lower on Friday as earnings reports from the mega-cap technology companies failed to impress investors.
Positive Economic News
Investors also ignored a strong start to earnings season, which has seen 85% of reporting companies in the S&P 500 index beating earnings estimates by an average margin of 19%.8
THIS WEEK: KEY ECONOMIC DATA
Source: Econoday, October 30, 2020
THIS WEEK: COMPANIES REPORTING EARNINGS
Source: Zacks, October 30, 2020
1. The Wall Street Journal, October 30, 2020
2. The Wall Street Journal, October 30, 2020
3. The Wall Street Journal, October 30, 2020
4. CNBC, October 27, 2020
5. The Wall Street Journal, October 27, 2020
6. CNBC, October 29, 2020
7. The Wall Street Journal, October 29, 2020
8. CNBC, October 29, 2020
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Weekly Market Insights: No Stimulus, Stocks Lag
| November 03, 2020