US stocks mixed after investors predicted a rise in COVID-19 in Europe
US stocks ended the last trading day of the week mixed as investors assessed the rise of COVID-19 in Europe and its impact on the global economic recovery.
The S&P 500 flat ended after the benchmark index closed at an all-time high in the previous session as corporate earnings continued to weigh on investors. The Dow Jones Industrial Average fell while tech heavy Nasdaq-100 reached an all-time high, surpassing both indices.
This is where the US index stood at 4:00 pm ET on Friday:
Cases of COVID-19 are on the rise in Europe, with Austria announcing on Friday that it would go into complete lockdown by next week and introduce mandatory vaccinations. Meanwhile, parts of Germany shut down unnecessary businesses. The Netherlands has ordered the immediate closure of restaurants, shops and bars.
“Europe is an important part of the global economic recovery and if more countries go into lockdown mode, it will be a major headline for US equities,” Edward Moya, Onda’s senior equity analyst, said in a note on Friday.
Despite supply chain disruptions and inflationary pressures, US stocks continued to rise as corporate earnings exceeded Wall Street expectations. The low bond yields have also made the stock more attractive to investors.
On Friday, 10-year Treasury yields fell 1.545% to 1.586% on Thursday. Bond yields and prices move in opposite directions.
There were also comments from two Federal Reserve officials, Governor Christopher Waller and Vice Chairman Richard Clarida, who affected the Treasury curve, suggesting the possibility that the central bank may need to sharply reduce asset purchases.
President Joe Biden’s next announcement on the investors’ radar is who will lead the Federal Reserve. Biden said he would announce the decision before Thanksgiving. Current chair Jerome Powell and Fed Governor Lille Brennard are seen as the two frontrunners.
Macy’s is launching its first NFT series featuring its famous Thanksgiving Day Parade balloons.
The NFT market has seen explosive growth this year, with digital collectibles selling at a monthly rate of about $ 2 billion, a huge increase from the monthly sales volume of about $ 400 million at the beginning of the year, according to JPMorgan. According to the bank, the market cap of the NFT universe has grown to about ً 7 billion.
Oil prices fell as the rise of the corona virus in Europe raised concerns about economic recovery and as traders weighed in on the possibility of countries releasing strategic reserves.
West Texas Intermediate crude fell 3.67 percent to 76 76.11 a barrel. Brent, the international oil standard, fell 3.35 percent to 78 78.52.
Gold fell 0.67 percent to 8 1,847.08 an ounce.