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Coronaviruses

Stocks Rise Amid Worrying Rise of Delta Strain and Mixed Economic Signals

Strategic Insights

— 2 min read

As Wall Street begins the new week, stocks were mostly higher, but a worrying rise of the highly contagious Delta strain of the coronavirus in Asia and Europe has investors taking a defensive posture. The Dow Jones Industrial Average fell 42 points, or 0.12%, to 34,291, while the S&P 500 gained 0.16% and the Nasdaq was up 0.59%. The S&P 500 and Nasdaq set intraday record highs on Monday.

Key Takeaways:

  • The Dow Jones Industrial Average fell 42 points, or 0.12%, to 34,291, despite the rise of the Delta strain in Asia and Europe.
  • The S&P 500 and Nasdaq set intraday record highs on Monday, despite concerns about the new outbreak in the region.
  • The S&P 500 gained 0.16% on Monday, following its best weekly performance since February, amid optimism about the U.S. economic recovery.
  • Fears over the Federal Reserve's hawkish tilt have eased, with sentiment getting a boost from a report on inflation that came in as expected.
  • The personal consumption expenditures price gauge (PCE) rose 0.4% in May, below forecasts, calming market worries about a rapid rise in prices.
  • Investors were encouraged by the announcement of a roughly $1 billion bipartisan infrastructure deal, which contributed to the stock market's optimism.
  • Boeing (BA) shares fell on Monday due to reports of delayed federal approval for its fuel-efficient 777X airliner, which may not receive certification until 2023.
  • Tesla (TSLA) will recall about 285,000 of its Model 3 and Model Y electric cars built in China due to a software glitch, which did not seem to affect its stock performance on Monday.

Statistics:

  • The Dow Jones Industrial Average fell 42 points (0.12%) on Monday.
  • The S&P 500 gained 0.16% on Monday.
  • The Nasdaq was up 0.59% on Monday.
  • The S&P 500's weekly performance in May was its best since February.
  • The PCE rose 0.4% in May, below forecasts.
  • The nearly $1 billion bipartisan infrastructure deal was announced in recent weeks, contributing to market optimism.
  • Boeing (BA) shares fell on Monday, while Tesla (TSLA) shares were up 1.1% despite the software glitch recall.

Sources:

  • [https://realmoney.thestreet.com/jim-cramer/jim-cramer-you-can-t-aspire-to-be-a-meme-stock-15696064](https://realmoney.thestreet.com/jim-cramer/jim-cramer-you-can-t-aspire-to-be-a-meme-stock-15696064)
  • [https://www.thestreet.com/markets/stock-market-today-dow-jones-nasdaq-inflation-nike-062521](https://www.thestreet.com/markets/stock-market-today-dow-jones-nasdaq-inflation-nike-062521)
  • [https://www.thestreet.com/investing/fed-pce-inflation-gauge-extends-surge-to-3-9-but-spending-slows](https://www.thestreet.com/investing/fed-pce-inflation-gauge-extends-surge-to-3-9-but-spending-slows)
  • [https://www.thestreet.com/investing/boeing-shares-slide-amid-reports-of-delayed-777x-certification](https://www.thestreet.com/investing/boeing-shares-slide-amid-reports-of-delayed-777x-certification)
  • [https://www.thestreet.com/investing/tesla-faces-china-recall-over-software-glitch](https://www.thestreet.com/investing/tesla-faces-china-recall-over-software-glitch)

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