Reply To: Traders Market Weekly: it’s a Mad, Mad World of Political Uncertainty

#75008
Truman
Participant

As we head into Independance day…

The S&P 500 (+0.5%) and Nasdaq Composite (+0.9%) pushed further into record territory on this holiday-shortened session. The Russell 2000 (+0.1%) and S&P Mid Cap 400 (+0.3%) also closed with gains.

Dow -23.85 at 39308.00,
Nasdaq +159.54 at 18188.30,
S&P +28.01 at 5537.02

The price-weighted Dow Jones Industrial Average (-0.1%) closed slightly lower than yesterday due to a decline in its top weighted component, United Healthcare (UNH 489.89, -8.35, -1.7%).

Solid gains in the mega cap space had an outsized impact on index gains, but many other stocks participated in upside moves.

NVIDIA (NVDA 128.28, +5.61, +4.6%),
Broadcom (AVGO 1729.22, +71.74, +4.3%)
Tesla (TSLA 246.39, +15.13, +6.5%)
Apple (AAPL 221.55, +1.28, +0.6%)
Microsoft (MSFT 460.77, +1.49, +0.3%)
Alphabet (GOOG 187.39, +0.78, +0.4%)

S&P 500 information technology sector to the top of the leaderboard among the 11 sectors, up 1.5% for the day. The materials (+0.8%) and utilities (+0.6%) sectors were also top performers.

The health care sector (-0.7%) saw the largest decline due to losses in UNH, Eli Lilly (LLY 898.10, -8.61, -1.0%), and others.

A drop in market rates created an upside catalyst for stocks.

10-yr note yield is down nine basis points to 4.35%
2-yr note yield is down four basis points to 4.70%.

This price action in Treasuries thus far is in response to this morning’s weaker-than-expected economic data. ADP Employment Change Report reflected slowing growth in payrolls and the ISM Non-Manufacturing Index reflected a contraction in service sector activity (i.e. below-50 reading).

Nasdaq Composite: +21.2% YTD
S&P 500: +16.1% YTD
S&P Midcap 400: +4.9% YTD
Dow Jones Industrial Average: +4.3% YTD
Russell 2000: +0.5% YTD