July 12, Market Update
Wall Street rebounded on Thursday, resuming its recent upward trend following a trade induced sell off in the prior session. Stocks opened in the green and extended their gains throughout the day. The major averages each achieved a notable milestone: the Nasdaq (+1.4%) finished at a new record, the S&P 500 (+0.9%) hit its best level since the big drop in early February, and the Dow (+0.9%) returned to positive territory for the year. Small caps under-performed, but the Russell 2000 (+0.4%) still managed a modest gain.
The top-weighted technology sector (+1.8%) led Thursday's broad-based advance. Within the space, influential names like Microsoft (MSFT 104.19, +2.21), Alphabet (GOOG 1183.48, +29.58), and Facebook (FB 206.92, +4.38) rallied to new record highs, adding more than 2.0% apiece. Apple (AAPL 191.03, +3.15) also had a good performance, adding 1.7%. On the downside, the heavily-weighted financial sector (+0.2%) lagged, closing near the bottom of the sector standings amid another curve-flattening trade in the bond market. Treasuries ended modestly lower, pushing the benchmark 10-yr yield up one basis point to 2.85% and the 2-yr yield up two basis points to 2.60%. That left the 2-10 year treasury spread at 25 basis points, which is its lowest level since 2007. Overseas, President Trump wrapped up a two day NATO summit in Brussels on Thursday morning, saying NATO withdrawal is now "unnecessary" after member states reaffirmed a commitment to spending 2% of their GDP on defense. The president then flew to the UK for a meeting with Prime Minister Theresa May.
Graph: Google finance
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