Stocks gained to start the week as the FDA's approval of Pfizer (NYSE:PFE)'s vaccine helped support market sentiment. The approval could convince more employers to mandate the use of the vaccine. The Nasdaq composite outperformed the S&P 500 (SPY) and Dow Jones Industrial, while small-cap stocks bounced back with solid gains after a week of losses. Energy stocks also gained as crude oil prices rose about 10% for the week. However, trading was very light, which is typical for the last full week in August. I’ll discuss this and more below….(Please enjoy this updated version of my weekly commentary published August 30, 2021 from the POWR Value newsletter).
Heading into Monday, investors were looking to extend the momentum from the previous Friday's mini-rally. Before that Friday, the S&P 500 had posted its worst weekly performance in a month. As I mentioned above, stocks were driven by an announcement that Pfizer's COVID-19 vaccine earned formal approval from the FDA.
The move is expected to boost inoculation rates and help stop the spread of the virus's Delta variant. Stocks continued to move higher on Tuesday and Wednesday before tumbling on Thursday after an attack at the Kabul airport in Afghanistan during the U.S. military's withdrawal.