August 28, 2020
In a volatile day of trading yesterday, the Dow and S&P 500 held on to post gains of 160.37 and 5.82 points, or +0.57% and +0.17%, respectively. Once again, the NASDAQ was on its own path, slipping 39.76 points, or -0.34%. This was an all-time high for the S&P 500 for the fifth day in a row. So far this week, the S&P 500 is up 2.5%, on pace for its best week since July 2 and its fifth straight week of gains for the first time this year.
With the Dow gaining 160 points yesterday, it remains down 0.1% for the year. Within the first 30 minutes of trading today, the Dow has broken into positive territory for 2020. Yesterday, the Dow climbed into positive territory intraday, but dropped off at the close.
Stocks got a boost yesterday from the Federal Reserve as it unveiled its major policy shift of allowing inflation and employment to run higher to continue to support the economy. The move indicates that interest rates are likely to remain near zero or a long period of time.
Vital economic data is due out today, to include consumer spending, personal consumption expenditures and consumer sentiment. As previously noted, the strength of the American consumer had everything to do with the growth of GDP and therefore the U.S. economy.