Stock market today: Dow slightly down, stocks on track for best week since November
U.S. stocks have made a remarkable recovery from their losses in early August, and all three major U.S. indexes are heading for their best weeks since November 3, according to Dow Jones Market Data.
The Dow rose 1,065.52 points, or 2.7%, to 40,563.06 this week.
The S&P 500 rose 199.05 points, or 3.7%, to 5,543.22 this week.
The Nasdaq Composite Index rose 849.19 points or 5.1% to 17,594.50.
Stock prices were little changed on Friday in relatively quiet summer trading. But stock markets may not be out of the woods yet, according to Nathan Hoyt, chief investment officer at Regent Peak Wealth Advisors.
While this week’s economic data may have helped ease investors’ fears of a looming recession, the next sell-off could be just another weak jobs forecast away, Hoyt says.
Geopolitical risks and an uncertain political landscape in the US could also pose problems for markets, he added.
“Investors are still looking for reasons to sell off,” Hoyt said in an interview with MarketWatch on Friday.
So far, technology stocks have led the recovery after last week’s slump, which dampened enthusiasm for small caps and other beneficiaries of July’s rotational trade.
“People have shown that they are not willing to give up their large-cap growth stocks that have performed so well,” Hoyt said.
Whatever happens next, Hoyt doubts that markets will return to the gentle uptrend that has characterized the past 18 months. Instead, he expects the market to “climb higher” between now and the end of the year, punctuated by further bouts of volatility.
