The Dow Jones, the S&P 500, and the Nasdaq weakened on a weekly basis as investors have started to behave nervously amid concerns that the economy could be hit by the fast-spreading Delta variant of the coronavirus. Delta is now the dominant variant and accounts for more than 50% of positive COVID-19 samples in many countries, which signals that the battle against the coronavirus is still not over.
Public health officials reported on Friday that U.S. coronavirus cases were up 70% over the previous week, with deaths up 26%. Investor optimism fell to the lowest level since October 2020, according to the report from the American Association of Individual Investors.
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“The global tally of confirmed cases of COVID-19 climbed above 189 million on Friday, as the highly transmissible delta variant continued to spread across the world, pushing new infection numbers higher in many countries. The new variants will continue to emerge as long as the virus keeps spreading, and new ones could be more lethal or prove resistant to vaccines, undermining the entire effort,” the World Health Organization reported.
It is important to mention that mixed U.S. economic data that was published last week also raised concerns about slowing economic growth. U.S. retail sales were up in June 0.6%, but consumer confidence contracted in July to 80.8 from 85.5 in June.
U.S. Federal Reserve Chairman Jerome Powell said that inflationary pressures are likely to be temporary, but he also said that FED members would continue to discuss tapering in the upcoming meetings.
S&P 500 down -1% on a weekly basis
For the week, S&P 500 SPX weakened by -1% and closed at 4,327 points.
If the price falls below 4,200 points, it would be a strong “sell” signal, and we have the open way to 4,100 or even 4,000 points. The upside potential remains limited for the week ahead, but if the price jumps above 4,400 points, the next target could be around 4,450 points.
DJIA down -0.5% on a weekly basis
The Dow Jones Industrial Average DJIA weakened -0.5% for the week and closed at 34,687 points.
Dow Jones weakened from its recent highs, and if the price falls below 34,000 points, it would be a strong “sell” signal. The current resistance level stands around 35,000 points, and if the price jumps above this level, the next target could be around 35,200 points.
Nasdaq Composite down -1.9% on a weekly basis
The Nasdaq Composite (COMP) has lost -1.9% on a weekly basis and closed at 14,427 points.
The strong support level stands around 14,000 points, and if the price falls below this level, it would be a strong “sell” signal, and we have the open way to 13,500 points.
Wall Street’s three main indexes ended sharply lower on Friday as investors have started to behave nervously amid concerns that the Delta variant of the coronavirus could hit the economy. For the week, the Dow Jones weakened -0.5%, the S&P 500 -1%, the Nasdaq -1.9%, and the risk of further decline is probably not over.
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