The biggest news of the week for the S&P 500 (Index: SPX) came on Wednesday, 29 July 2020, as Federal Reserve Chair Jerome Powell confirmed the Federal Reserve is "committed to using our full range of tools to support the U.S. economy at this difficult time".
Combined with strong earnings reports from the megacap tech companies whose share of the S&P 500 has surged during the coronavirus recession, the S&P 500 index continued its upward trajectory, as anticipated.
We'll take a closer look at the growing share that America's megacap tech firms are now claiming later this week.
The news of the week that was points to the ongoing coronavirus epidemic in the U.S. as a driving factor affecting the Fed's expansionary stance. That stance is an outcome of the delayed first wave of infections now affecting large population states, such as California, Florida, and Texas, that had largely escaped having significant numbers of cases when the virus ran rampant through the northeastern part of the country back in March and April 2020.
Here are the more notable market moving headlines we found in the past week's newstream.
- Monday, 27 July 2020
- Daily signs and portents for the U.S. economy:
- Oil rises on hopes for U.S. stimulus measure
- U.S. manufacturing sector regaining momentum, rising COVID-19 threatens recovery
- Bigger stimulus taking hold in China:
- China expands state jobs for graduates as coronavirus hits private sector
- China's industrial profit growth quickens, signals firming economic recovery
- Bigger stimulus under negotiation in the U.S.:
- Trump team, Senate Republicans agree on coronavirus aid offer to Democrats
- U.S. Republicans race to finish coronavirus aid plan as jobless benefits set to expire
- Fed meeting expected to leave U.S. bond-stock relationship out of whack
- Euro zone economy not yet out of danger from coronavirus: ECB's Panetta
- Wall Street rises as investors watch stimulus, pandemic and earnings
- Tuesday, 28 July 2020
- Daily signs and portents for the U.S. economy:
- Oil falls as U.S. stimulus package faces tough talks
- Fed announces extension in lending facilities until end of the year
- U.S. homeownership rate rises to highest level since 2008
- Pelosi, Schumer to meet top administration officials on coronavirus aid
- Bigger trouble developing in the Eurozone, Taiwan:
- Spain sheds record number of jobs in second-quarter as COVID-19 bites
- Taiwan second-quarter GDP growth may slow further to four-year low on pandemic hit: Reuters poll
- Bigger bailouts developing in the Eurozone:
- ECB extends dividend ban, capital relief for euro zone banks
- Italy will help tourism, auto sectors in next stimulus drive -minister
- Wall St. pauses as pandemic hurts consumer confidence and earnings; stimulus underwhelms
- Wednesday, 29 July 2020
- Daily signs and portents for the U.S. economy:
- Oil edges up after sharp U.S. crude inventory drop
- U.S. small businesses face mass closures without more pandemic aid
- Bigger trouble developing in Asia:
- China's factories may lose momentum in July amid floods, soft global demand: Reuters poll
- South Korea's July exports seen falling for fifth month on weak global demand: Reuters poll
- Singapore's jobless rate jumps in second quarter, nearing financial crisis peak
- Japan government sees economy shrinking this year on COVID-19 hit: sources
- Bigger stimulus developing in... Cuba?
- Fed minion speaks, investors like what they hear:
- Thursday, 30 July 2020
- Daily signs and portents for the U.S. economy:
- Oil sinks on weak U.S. economic data, political uncertainty
- Plunging U.S. GDP through June gives way to slow climb back in July
- Bigger trouble developing in Germany, Japan:
- German economy shrinks at record pace in 'recession of a century'
- German GDP plunge in second quarter wipes out nearly 10 years of growth: stats office
- Japan slashes GDP forecasts, expects biggest contraction in decades this fiscal year
- Former Fed minion says Fed minions are sexist:
- Wall St falls after historic GDP slump, Trump suggests election delay
- Friday, 31 July 2020
- Daily signs and portents for the U.S. economy:
- Oil posts monthly gains as U.S. reports record output cuts in May
- U.S. consumer spending rises for second straight month, income drops further
- White House blames Democrats for failure to renew federal jobless benefits
- Fitch revises U.S. outlook to 'negative' from 'stable'; affirms AAA rating
- Bigger trouble, some positive signs developing in the Eurozone:
- Spain dives into deep recession, tourism woes bode ill for rebound
- Portugal's GDP slumps 14.1% in second quarter, biggest contraction ever recorded
- Euro zone inflation unexpectedly ticks up amid record GDP slump
- Italy's GDP slumps unprecedented 12.4% in second quarter, but better than analysts had feared
- Revived French consumer spending offers hope after economy plunges record 13.8%
- Rebounds beginning in Asia:
- China's factories accelerate recovery in July as demand perks up
- Japan's factory output rebounds, jobless rate dips as lockdown lifts
- Fed, ECB minions open for business:
- Fed's Main Street loan volume picks up but still modest
- ECB has to maintain 'safety net' until June 2021, Lagarde says
- Nasdaq surges on megacap earnings but U.S. fiscal uncertainty nags
Elsewhere, Barry Ritholtz presents a list of positives and negatives he found in the week's economics and markets news at The Big Picture.