The stock markets fell last week as the Dow (-1.6%), NASDAQ (-4.1%), and S&P 500 (-2.5%) dropped for the second straight week. The markets were led downward by the tech giants, and sent the NASDAQ into correction territory (defined as a drop of >10%) only 8 days after hitting its all time high. Meanwhile, the Dow slipped into negative territory again for the year, and is now down 1.8% YTD. Taxable bonds were up slightly, about 0.1% - 0.2%, while muni bonds were down about the same amount.
The markets look to be starting this week off on a positive note, as futures are up over 1% in pre-market trading. Positive projections were also made by JP Morgan and Goldman Sachs that 2021 would provide strong earnings by the S&P 500, surpassing the earnings we saw in 2019. However, both firms also commented that those earnings projections relied upon there being a vaccine, and they also both noted that the largest risk in the markets right now is the election, suggesting that a Democratic sweep could result in tax reform that could derail those optimistic profit projections.
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