While the S&P 500 (SPY) finished slightly lower last week, it was anything but uneventful. There was a flurry of earnings reports, economic data, and the Federal policy meeting. The Fed stood pat as the COVID Delta variant continues to create concern in the markets, and Chinese stocks fell due to China's regulatory crackdown. I will delve deeper into these topics and more in my commentary below….(Please enjoy this updated version of my weekly commentary from the POWR Value newsletter).
As I’ve mentioned in my past commentaries, I believe there will be constant back and forth between up days and down days in the market as long as COVID is still a concern. The S&P finished down 0.37% last week, with the Delta variant and the China crackdown being the big stories.
Chinese stocks plummeted as China clamped down on an array of industries. Stocks in Asia did recover as Beijing made comments to calm down investor anxiety. While this is something I plan to keep an eye on, I don’t believe it will negatively impact the U.S. markets or our holdings.