Stock Market Trends: An Overview of Key Movement and Economic Indicators

Market Overview

The Dow was trailing the other two major indexes on Friday because some of its most important stocks were struggling. The Dow was down 36 points, or 0.1%, while the S&P 500 was up 0.3%. The Nasdaq Composite was up 0.4%. There’s not much happening in the stock market today, but roughly 313 S&P 500 stocks were on the rise.

Tech Stock Movements

Though 18 of the 30 Dow stocks were rising, the index was being weighed down by declines from some of its largest stocks, including Salesforce with a $252 stock price and a 1.9% decline, and UnitedHealth Group at $587, down 0.7%. The Dow is weighted based on stock price instead of market cap, so companies with large stock prices can move the index more than megacap firms with smaller stock prices.

Economic Indicators Ahead

Don't read too much into today's moves as it is the day before a holiday weekend and the end of month rebalancing. Additionally, it's a slow economic news day, leading to a market pause with a significant employment report slated for next week.

• The Dow looks set to wrap up August with a year-to-date gain of 9.7%.
• The S&P 500 is up nearly 18% this year.
• The Nasdaq Composite shows a gain of 17% year-to-date.

Future Predictions

Going back to 1971, the S&P 500 has risen 70% of the time from Labor Day to the end of the year based on Dow Jones Market Data. It's averaged a gain of 2.8%. The Dow has risen 72% of the time with an average gain of 2.7%. The Nasdaq Composite has risen 68% of the time for an average gain of 3.4%. However, this year may prove to be a bit more turbulent due to the Federal Reserve's actions and an upcoming presidential election.