The failure to reach an agreement on a new fiscal stimulus bill soured investor sentiment and sent stocks modestly lower for the week.
The Dow Jones Industrial Average fell 0.95%, while the Standard & Poor’s 500 lost 0.53%. The Nasdaq Composite index slipped 1.06% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, declined 0.44%.1,2,3
Markets Disappointed with Stimulus Impasse
Hopes for striking a deal were raised late in the week as comments from a key negotiator suggested that a deal might be getting closer to fruition. The week ended, however, without an agreement, cementing a disappointing week of performance.
Market sentiment was further weighed down by the continued rise in COVID-19 cases in the U.S. and Europe, though anxieties were tempered by the belief that a full economic lockdown was unlikely.
New Jobless Claims Fall
The report wasn’t entirely positive, however, as more than 500,000 individuals were added to the emergency assistance program that extends unemployment benefits to those who have run out of state unemployment benefits.5
THIS WEEK: KEY ECONOMIC DATA
Source: Econoday, October 23, 2020
THIS WEEK: COMPANIES REPORTING EARNINGS
Source: Zacks, October 23, 2020
1. The Wall Street Journal, October 23, 2020
2. The Wall Street Journal, October 23, 2020
3. The Wall Street Journal, October 23, 2020
4. CNBC, October 22, 2020
5. CNBC, October 22, 2020
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Weekly Market Insights: No Stimulus, Stocks Lower
October 27, 2020