THE WEEK ON WALL STREET
Stocks rallied last week as investor spirits lifted thanks to a better-than-expected start to the second-quarter earnings season.
The Dow Jones Industrial Average gained 1.95%, while the Standard & Poor’s 500 added 2.55%. The Nasdaq Composite index jumped 3.33% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, advanced 3.54%.1,2,3
EARNINGS PROPEL STOCKS
Earnings season kicked off last week, with major banks reporting second-quarter results. While their results were mixed, they appeared to indicate that consumers and businesses remained reasonably healthy–a perspective that helped erase some negative sentiment overhanging the market.
As the week progressed, stocks gained momentum as earnings results poured in from different sectors of the economy, showing that businesses were navigating higher inflation and slowing growth better than investors feared. Technology and other gloomier sectors were among the market’s best performers for the week. A few disappointing corporate reports and a weak economic report sent stocks lower to close out a solid week.
1. The Wall Street Journal, July 22, 2022
2. The Wall Street Journal, July 22, 2022
3. The Wall Street Journal, July 22, 2022