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Market roundup for Aug. 7 – Caribbean Business

By on August 7, 2020

SAN JUAN – The U.S. stock market closed the week with mixed results.

One critical issue that may be impacting the markets is the collapse in real yields, which is the net return bond investors receive once inflation is considered.

Investors are witnessing an undulating collapse across the global financial markets — one of the drivers for the record rallies in assets from gold to technology stocks.

Meanwhile, the U.S. Bureau of Labor Statistics reported Friday that unemployment had fallen to 10.2%, from 11.1% the previous month. In addition, 1.19 million new unemployment applications were filed, a decrease of 17.35%.

On to markets:

Finally, the yield on 10-year inflation-linked U.S. government bonds, known as “Tips,” fell below -1%. That may be a sign that investors believe rising coronavirus cases may inflict further damage to the U.S. economy.

  • The Dow Jones Industrial Average closed at 27,433.48, up 46.5 points, or 0.17%.
  • The Standard & Poor's 500 Index closed at 3,351.28, up 2.12 points, or 0.06%.
  • The NASDAQ Composite Index closed at 11,010.98, down 97.09 points, or 0.87%.
  • The Birling Capital Puerto Rico Stock Index closed at 1,497.27 points, down 47.88, or 3.1%.
  • The US Treasury 10-year note closed up, at 0.57%.
  • The U.S. Treasury 2-year note closed flat, at 0.13%.

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