The previous week’s optimism continued to fuel market returns last week. The first half of the week posted solid gains for the Dow Jones Industrial Average and the S&P 500. The tech heavy NASDAQ dropped, but this was attributed to hopes of a successful vaccine and economic recovery, which in turn would jump start profits in more traditional industries.
COVID concerns returned on Thursday as the nation continues to break records for new cases. Jerome Powell, the chair of the Federal Reserve, commented that the near-term economic outlook remains uncertain. “We’re recovering, but to a different economy and it will be one that is more leveraged to technology, and I worry that it’s going to make it even more difficult than it was for many workers.” The major markets responded by pulling back.
That pullback was short lived, though, as Friday again posted solid returns. For the week, the Dow Jones gained over 4%. The S&P gained over 2% and the NASDAQ was nearly unchanged.