Wall Street Enjoys Best Week in Months

The Nasdaq enjoyed a streak of record closes

Assistant Editor
Jun 25, 2021 at 1:57 PM
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Following last week's selloff driven by an update from the Federal Reserve, things were looking pretty grim for the market. However, Monday saw the Dow erase all of it's losses, adding nearly 600 points by the session's end, while the S&P 500 also staged a comeback. While the Nasdaq had a rather muted start to the week, Tuesday saw the tech-heavy index snag a record close as investors brushed off a probe into Alphabet (GOOGL) and Bitcoin's (BTC) wild price action.

By Wednesday, the Nasdaq scored another record close and the S&P 500 stayed near record highs, though the Dow dropped off slightly despite Fed Chair Jerome Powell's optimistic comments regarding inflation pressure. And it seems Powell's comments helped calm worries, as the Dow traded near its all-time high by Thursday afternoon. By the close, U.S. President Joe Biden's infrastructure deal stole the spotlight, helping the S&P 500 and Nasdaq once again notch record closes. As of Friday afternoon, infrastructure optimism has carried over, helping the S&P 500 to an intraday high. Even better, all three major benchmarks are on their way to substantial weekly gains.

Biggest Earnings Report of the Week

Earnings haven't been at the forefront of investors' minds of late. Nevertheless, there were a few reports worth mentioning, including Nike (NKE), whose shares surged 14% after a blow out fiscal fourth-quarter. Tech concern Accenture (ACN) notched a record high, after the company's fiscal third-quarter results were boosted by increased demand for digital, cloud, and security services. Plug Power (PLUG) stock also popped, despite wider-than-expected first-quarter losses, as investors latched onto an impressive revenue beat. Lastly, pharmacy name Rite Aid (RAD) underperformed the broader market following dismal revenue results.

 

Virgin Galactic Makes History 

While Fed updates kept eyes focused on the major benchmarks, there was a slew of news pouring out surrounding corporate updates. Virgin Galactic (SPCE) made history after the space exploration company was granted approval to take paying customers to space. Uber (UBER) stock took a breather, after the rideshare staple agreed to acquire grocery delivery name Corershop. Entera Bio (ENTX) saw its shares skyrocket following positive results from a clinical trial of its osteoporosis treatment. Elsewhere, Shake Shack (SHAK) announced plans to expand its footprint in China. A spotlight was put on McAfee (MCFE), as not only did the company see a surge in threats over the first quarter, but its founder John McAfee was found dead in a Spanish prison.

Can the Bullish Sentiment Stay Strong?

There's still plenty of data ahead to grab investors' attention when looking ahead. Moreover, notable quarterly reports are trickling in, including those from Bed Bath & Beyond (BBBY), Constellation Brands (STZ), General Mills (GIS), and Walgreens Boots Alliance (WBA). Meanwhile, Schaeffer's Senior Quantitative Analyst Rocky White weighs in on the overwhelming bullish sentiment of late. Traders should also check out what's to come following expiration week.

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