The Dow snapped a record streak of wins to traverse a turbulent week. Trade-war related concerns continued to weigh on investors with President Trump expressing doubts over the success of upcoming negotiations with China. Additionally, the spike in 10-year Treasury yield also spooked markets, sparking off fresh inflationary concerns. Such fears were also stoked by encouraging retail sales numbers.
Last Week’s Performance
The Dow increased 0.4% on last Friday, marking its seventh straight session of gains. This was the blue-chip index’s longest winning streak since Nov. 8, 2017. Notably, healthcare stocks were down initially following the news that President Trump unveiled his new healthcare plan.
However, the broad market recovered later after the announcement was not followed up by stringent measures. Low inflation data and weak dollar also boosted investors’ confidence in equities.
The index gained 2.3% over last week. This was the blue-chip index’s largest weekly gain since March. Energy and tech stocks were major drivers of the U.S. stock markets. Oil prices first rallied on last Wednesday in the wake of United States’ decision to exit the Iran nuclear deal. This increase fueled a rally in energy stocks once again.
Meanwhile, Apple Inc.’s AAPL shares jumped after celebrity investor Warren Buffett’s Berkshire Hathaway BRK-B announced that it had bought 70 million shares of Apple in the first quarter. Consequently, shares of Apple rose to an all-time high $190.37.
The Dow This Week
The index gained 0.3% on Monday, increasing for the eighth consecutive session. This marked the blue-chip index’s longest winning streak since Sep. 20, 2017. Stocks gained on the first trading day of the week as trade fears subsided. President Donald Trump tweeted on Sunday that he was considering relaxing stringent sanctions that have been imposed on Chinese tech giant ZTE Corp. last month.
The index lost 0.8% on Tuesday after the yield on the 10-year U.S. Treasury Note hit a seven-year high. This, in turn, occurred after retail sales increased over two consecutive months, raising inflationary fears. Moreover, U.S. Commerce Secretary Wilbur Ross and U.S. Ambassador to China Terry Branstad commented that trade tensions between the United States and China were far from over.
