US Stock Market Enters Cautious Period as Nasdaq Indices Crash
The US stock market is entering a new month on August 3rd, and the overall weekly outlook is cautious. The Dow Jones and S&P 500 marginally rose in July, but the Nasdaq Composite and Nasdaq 100 indices crashed severely on a month-on-month basis.
Nathan Peterson, Director of Derivatives Research and Strategy for Charles Schwab, notes that August and September are historically bearish seasons for stocks. He attributes this to rising Treasury yields and potential spikes in oil prices due to geopolitical risks in West Asia.
The Dow Jones ended July at 52,485.03, up 179.79 points or 0.34%, while the S&P 500 rose by only 6.49 points or 0.09%. The Nasdaq Composite declined by 666.18 points or 2.6% for the month.
The week ahead will be marked by various economic data releases, including Construction Spending and ISM Manufacturing Index on August 3rd. Earnings reports from companies like SpaceX, Amazon, and Microsoft are also expected to impact market sentiment.