Markets at the End of the Week
The Standard & Poor’s 500 index closed lower on Friday after a volatile session as investors took into account increased cases of Covid-19 and Apple’s announcement to close new stores, in the face of expected stimulus and continued economic recovery.
Ultimately, the Standard & Poor‘s 500 Index fell, as did the Dow, the Nasdaq, which the technology stocks weighed on a slight increase.
The Dow Jones industrial average fell 208.64 points, or 0.8 percent, to 25,871.46 points, the Standard & Poor’s 500 Index closed 17.53 points, or 0.56 percent, to 3097.81 points, and the Nasdaq Composite Index increased 3.07 points, or 0.03 percent, to 9946.12 points.
Moody’s also kept its outlook for the country stable.
Moody’s credit rating agency on Friday maintained the US credit rating of “Aaa”, attributing that to an exceptional economic strength.
Oil prices rose on Friday, but retreated significantly from altitudes earlier in the session, on concerns that the continued spread of the new Corona virus could undermine the economic recovery of the United States.
The benchmark Khama tracked the impact of other assets that had fallen after Boston Fed President Eric Rosengren said there would likely be more financial and monetary support to the US economy.
Rosengreen reiterated his view that the unemployment rate in the United States will be “at the double-digit levels” at the end of 2020 and warned against a rapid reopening of the economy after the end of public isolation measures aimed at containing the virus.
Adding to the concerns, Apple announced that it would again close some stores as the virus spread further.
“It freaked everyone out in North and South Carolina,” said John Kildoff, partner at hedge fund Again Capital Management.
And Brent crude was settled, up 68 cents per barrel at 42.19 dollars. The US crude was settled, up 91 cents, at 39.75.
US crude rose 8.7 percent this week, while Brent rose 9 percent.
The previous gains came during the session after Iraq and Kazakhstan pledged, during a meeting of an OPEC + committee on Thursday, to improve their commitment to reduce supplies. This means that the restrictions imposed by the Organization of Petroleum Exporting Countries and its allies, within the framework of what is known as the OPEC + group, may rise in July.
US crude stocks hit a new record this week, but fuel inventories fell.
According to data from Baker Hughes, energy services company dating back to 1940, the number of oil and gas rigs operating in the United States, an early indicator of the future of production, fell to a record low for the seventh consecutive week, falling by 13 to 266 this week.
Markets at the End of the Week - /10
The Standard & Poor's 500 index closed lower on Friday after a volatile session as investors took into account increased cases of Covid-19 and Apple's announcement to close new stores, in the face of expected stimulus and continued economic recovery.