Weekly Financial Market Update - October 16, 2020
October 19, 2020
The three major U.S. equity averages ended the week slightly higher as strong earnings reports from several prominent financial sector companies were offset by the continued gridlock in Washington over a new relief package. The S&P 500 gained 0.2% for the week while the technology-heavy Nasdaq climbed 0.8%. Both indexes were helped by positive sentiment surrounding Apple’s (AAPL) upcoming iPhone 12 release and Amazon’s (AMZN) Prime Day events that kicked off on Tuesday.
Turning to the stimulus impasse, the Trump Administration increased its preferred package to $1.8 trillion last week in an encouraging sign a deal could be reached; however, House Democrats and Republican Senators rejected the new deal this week for several different reasons. President Trump’s economic adviser, Larry Kudlow, mentioned in an interview this week that it would be difficult for lawmakers to execute a relief package before the November 3 election.