Stocks fell as market volatility increased, with the S&P 500 down 2% for the week. President Biden dropped out of the 2024 race, endorsing Harris. Key earnings reports are imminent.
Key Takeaways
Market Volatility Spikes Amid Earnings Season And Political Developments
Biden Exits 2024 Race, Endorses Harris For Presidency
S&P 500 Valuations High; Earnings Reports Crucial
It was a volatile week for stocks. The S&P 500 lost a little over 0.5% on Friday, closing lower by 2% for the week. The Nasdaq Composite dropped by just under 1% on Friday, ending the week down 3.7%. Meantime, small caps dropped 0.5% on Friday, but the Russell 2000 ended the week higher by 1.6% and the Dow Jones Industrial Average ended up just under 1% for the week, despite falling by nearly the same amount on Friday. And if you thought last week was interesting, then to quote Bachman Turner Overdrive, you ain’t seen nothing yet.
The big news over the weekend was the decision by President Biden to drop out of the 2024 election and endorse Vice President Kamala Harris. For those following the election, the decision by Biden had a feeling of inevitability to it as calls for him to withdraw had grown increasingly vocal and big donors refused to contribute more money to his reelection efforts. Still, the largely unprecedented news adds to what was already an election season unlike any in recent history. Biden’s decision also happens to come at a time when market volatility is increasing for a number of reasons, including earnings season heating up.
This week will see 138 S&P 500 companies report second quarter earnings.
