Monday
The week started with heavy turbulence as the Dow Jones Industrial Average (INDEXDJX: .DJI) crashed 700 points with all the major U.S indices and European markets heavily declining into the red.
Market volatility arose due to an increase in global COVID-19 cases, increasing the likelihood of a second lockdown. Additionally, Congress has not yet agreed to another stimulus package with Chairman of the FED Jerome Powell responding that an economic rebound is “highly uncertain” without further stimulus.
The Tik Tok deal, planning to sell a 20% stake to Oracle and Walmart, received President Trump’s blessing with terms still to be negotiated. ByteDance, the parent company of TikTok, is seeking a $60 billion valuation. Oracle would receive a 12.5% stake and Walmart a 7.5% stake.
Chairman of UBS Axel Weber is reviving a decade-long push for a mega-merger to create a European banking giant that can compete with U.S. rivals. Possible acquisition targets include Deutsche Bank, BNP Paribas, and Credit Suisse.
Tuesday
Second wave fears continued to spread globally causing markets to further decline. This came as Prime Minister Borris Johnson announced new restrictions and the UK chief scientific advisor warning Britain should expect 50,000 cases per day by mid-october.
Tesla (NASDAQ: TSLA) held its shareholder meeting and long-anticipated battery day, where Elon Musked announced future plans for Tesla and their goals. Most notably, Tesla shared their plans for creating cheaper and longer-lasting car battery and an affordable vehicle in the price range of $25,000 to be expected within 3 years.
Wednesday
Wednesday was another day in the red for all U.S equities with tech stocks leading the losses.
Testifying in front of U.S. Congress on Wednesday, Fed Chairman Jerome Powell reiterated that continued government spending would allow the economy to reach a favourable 2% inflation rate and a healthier labour market. The California Governor Gavin Newsom announced an order to ban gasoline-powered cars in the state by 2035.
Johnson & Johnson (NYSE: JNJ) are on their third and final stage of a single dose vaccine, with results coming out by early 2021, and expected to deliver over 100m vaccines if it passes. There are many contenders for the vaccine and recent reports do suggest that Pfizer and Moderna are ahead in the race to get the vaccine as their final stage trial results to be released by mid-October.
Thursday
Markets continued with heavy volatility and ending in the red across all major U.S indices. Manipulation investigation: JPMorgan to pay nearly $1B in fines for precious metal spoofing.
According to Health and Human Services (HHS) Secretary Alex Azar, all six frontrunning COVID-19 vaccines are being produced at an industrial scale, preparing for emergency usage approval, which would be needed for widespread distribution.
Goldman Sachs (NYSE: GS) cut forecasted Q4 growth in half due to the unlikelihood of fiscal stimulus being injected in this year.
Friday
Today saw a rebound in major U.S indicies.
The Dow Jones Industrial Average closed at 27,173.96, down 1.1% for the week.
The S&P 500 closed at 3,298.46. Closing this week up 0.4%.
The Nasdaq Composite closed at 10,913.29. Closing up 2.9%.
Stoxx Europe 600 closed at 355.51. Closing down 3.4%.
Gold closed at $1866 an ounce, down 2.3% from $1910 on Monday.
Oil (WTI) closed 2.4% up for the week at $40.25 per barrel from $39.31 on Monday.
Next week, the calendar changes to October which will bring new economic data.
September has been a tumultuous month, with the following performance overall this month:
The Dow Jones Industrial Average is down 5.16%
The S&P 500 is down 5.97%
The Nasdaq is down 6.69%
The Sweeney Club 