Market Update

Posted on August 5, 2020 by Rick Fisher Jr.

Stocks opened higher. US stock markets opened in the green, with the Nasdaq reaching its 30th new record high of 2020. Investors are focusing on positive earnings reports, developments on the COVID-19 relief bill, vaccine progress, and jobs data. Asian markets posted mixed results, while European markets were higher during midday trading.

Gold cracks $2,000. The assault on higher prices continued for gold Tuesday, as it cracked $2,000 an ounce for the first time ever. Although this round number is nothing more than a psychological level, it is yet another reminder of the amazing run the yellow metal has had this year, now up more than 32% for the year.

Not all recessions are the same. Incredibly, the S&P 500 Index has gained more than 10% since the recession started in March 2020. What may be even more amazing is that stocks gaining during recessions is actually quite common. Looking at the 12 recessions since WWII, the S&P 500 has gained seven times. We take a closer look at this surprising phenomena later today on the LPL Research blog.

COVID-19 news. On Tuesday, new US daily cases fell 12.6% compared with the prior week, while the seven-day average dropped 9.7%. Testing dropped 7.8% over the week and contributed to the decline in cases (Johns Hopkins). Most states have seen cases level off or start to decline, though Illinois and Hawaii have emerged as new trouble spots. Novavax reported well-received vaccine data.

LPL Research in the Media

LPL Research on Yahoo! Finance. LPL Financial Chief Market Strategist Ryan Detrick joined “The Last Round” on Yahoo! Finance recently to discuss current market trends. Watch now.

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