# U.S. stock markets, treasury yields perk up, oil falters as choppy week winds down
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-07-23
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: Wall Street rises as Delta variant concerns ease, tech
Meta Description: With concerns over Delta variant and Fed meeting in focus, equities surge. Oil prices slip despite recovery. Stay updated with the latest market news.
URL: https://financedigest.com/u-s-stock-markets-treasury-yields-perk-up-oil-falters-as-choppy-week-winds-downhtml

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By Jessica DiNapoli

NEW YORK (Reuters) – Wall Street rose on Friday after a rocky week in which investors fretted over rising COVID-19 cases, spurred by the more contagious Delta variant, while oil prices slipped after a strong recovery from Monday’s slide.

Megacap tech stocks helped drive main U.S. indexes up again, with the S&P 500 and the Nasdaq 100 indices [hitting record](https://www.financedigest.com/russian-covid-cases-hit-record-high-as-eastern-europe-imposes-new-curbs.html "Russian COVID cases hit record high as eastern Europe imposes new curbs") highs. Yields on U.S. Treasuries were also up, as was the greenback, with investors eyeing [next week’s](https://www.financedigest.com/china-arrivals-in-uk-next-week-will-not-face-compulsory-covid-tests-independent.html "China arrivals in UK next week will not face compulsory COVID tests -Independent") Federal Reserve meeting, where the U.S. recovery and the [Fed’s support for the economy will be in focus](https://www.financedigest.com/fed-in-spotlight-with-us-focus-on-stability-first-republic.html "Fed in spotlight with US focus on stability, First Republic").

Despite its decline, [oil was set](https://www.financedigest.com/oil-ticks-up-as-u-s-inflation-cools-but-prices-set-for-monthly-drop.html "Oil ticks up as U.S. inflation cools, but prices set for monthly drop") to end the week little changed.

As long as monetary policy continues to be this aggressive, equities will continue to do well, over the long term,” said Steve Massocca, [managing director](https://www.financedigest.com/d2-legal-technology-appoints-jason-pugh-managing-director-drive-strategic-growth.html "D2 Legal Technology appoints Jason Pugh as managing director to drive strategic growth") at Wedbush Securities. “There are concerns about the Delta variant. It’s a concern that will [impact the economy](https://www.financedigest.com/spains-pain-could-impact-uk-economy.html "Spain’s pain could impact UK economy") because of government intervention and shutdowns. We’re [seeing money](https://www.financedigest.com/like-father-like-son-when-it-comes-to-money-men-more-likely-than-women-to-see-parents-as-a-good-role-model.html "Like father like son? When it comes to money, men more likely than women to see parents as a good role model") go back into names that tend to do well regardless of economic shutdowns.

Investors have been assuming “things will improve, travel will increase,” Massocca said.

If that thesis is thrown into jeopardy, it [put a hitch in the ‘giddy up’ in the market,”](https://www.financedigest.com/the-vitiligo-treatment-market-to-stay-digitally-put.html "The Vitiligo Treatment Market to stay digitally put") he added.

U.S. business activity grew at a moderate pace for a second straight month in July amid supply constraints, [suggesting a cooling](https://www.financedigest.com/stocks-yields-fall-data-suggests-u-s-economy-cooling.html "Stocks, yields fall; data suggests U.S. economy cooling") in economic activity, a report from data firm IHS Markit showed on Friday. IHS Markit said its flash U.S. Composite PMI Output Index, which tracks the manufacturing and [services sectors](https://www.financedigest.com/decline-in-german-services-sector-eases-raising-hopes-for-milder-recession-pmi.html "Decline in German services sector eases, raising hopes for milder recession -PMI"), fell to a four-month low of 59.7 from 63.7 in June. A reading above 50 indicates growth in the [private sector](https://www.financedigest.com/dollar-slides-on-contraction-in-private-sector-activity.html "Dollar slides on contraction in private sector activity").

The Dow Jones Industrial Average rose 237.61 points, or 0.68%, to 35,060.96, the S&P 500 gained 37.39 points, or 0.86%, to 4,404.87 and the Nasdaq Composite added 115.07 points, or 0.78%, to 14,799.66.

The dollar index rose 0.141%. For the week, it is up 0.2%, after rising 0.6% previously.

The yield on 10-year Treasury notes hovered around 1.3%, or almost 17 basis points [higher than a five-month low set](https://www.financedigest.com/londons-ftse-100-edges-higher-set-for-fourth-weekly-gain.html "London’s FTSE 100 edges higher, set for fourth weekly gain") on Tuesday, but was still at the low end of a recent range. The benchmark note traded up 1.8 basis points to 1.285%.

Upbeat earnings helped [lift European](https://www.financedigest.com/european-shares-edge-higher-on-healthcare-lift-weak-china-data-stokes-worries.html "European shares edge higher on healthcare lift, weak China data stokes worries") equities. But [Asian shares](https://www.financedigest.com/asian-shares-rise-dollar-dips-ahead-of-fed-policy-decision.html "Asian shares rise, dollar dips ahead of Fed policy decision") outside Japan were lower as COVID anxiety continued to take a toll.

Financial markets have swung from one direction to another this week as [investors try to assess](https://www.financedigest.com/dollar-tentative-as-investors-assess-rate-hike-path.html "Dollar tentative as investors assess rate-hike path") what the surging Delta variant means for the world economy.

After recording its steepest one-day drop [since May on Monday, the S&P 500 stock index went on to post the biggest one-day jump since March](https://www.financedigest.com/the-nasdaq-100-on-track-to-have-its-best-week-since-march-2010.html "The Nasdaq 100 On Track to Have its Best Week Since March 2010") a day later. It is [set to end the week higher](https://www.financedigest.com/oil-set-to-end-turbulent-2022-modestly-higher.html "Oil set to end turbulent 2022 modestly higher"). Currency, [bond and commodities markets](https://www.financedigest.com/stocks-up-bond-yields-fall-as-markets-mull-a-fed-policy-pause.html "Stocks up, bond yields fall as markets mull a Fed policy pause") have seen similar gyrations.

Equity [markets are signaling some symptoms of being tired after a long rally](https://www.financedigest.com/jittery-markets-attempt-risk-on-rally-while-waiting-for-powell.html "Jittery markets attempt risk-on rally while waiting for Powell") and recognize the peak growth environment,” said Antonio Cavarero, head of investments at Generali Insurance Asset Management.

But in the short-term, real yields are still too low to provide an alternative, so the [evolution of what happens next](https://www.financedigest.com/run-dtc-its-tricky-but-heres-what-the-next-evolution-of-ecommerce-will-look-like.html "Run DTC’: It’s tricky, but here’s what the next evolution of ecommerce will look like") depends on COVID and the macro data.

The pan-European STOXX 600 index rose 1.14%.

MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.7%, leaving it down 1.4% on the week.

Japan’s Nikkei was closed for a holiday, but off 1.7% for the week and a whisker away from a seven-month trough.

![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/stx2307-450x295-1736838141554-compressed.jpg)

(Graphic: S&P 500 [stock index vs absolute change](https://www.financedigest.com/stocks-dollar-little-changed-as-inflation-data-sends-mixed-signals.html "Stocks, dollar little changed as inflation data sends mixed signals"), daily, https://fingfx.thomsonreuters.com/gfx/mkt/klpykegajpg/stx2307.png)

Financial market volatility was expected to continue, given the resurgent Delta variant and [economic uncertainty](https://www.financedigest.com/combatting-economic-uncertainty-in-2023-with-the-payments-sector.html "Combatting economic uncertainty in 2023 with the payments sector").

Uncertainty has increased again with the pandemic,” said Pascal Peronne, a fixed income portfolio [manager at Eric Sturdza Investments](https://www.financedigest.com/invest-in-data-management-now-and-reap-the-rewards-sooner-than-later.html "Invest in data management now and reap the rewards sooner than later") in Geneva. I don’t [think there will be a closing of economies to the extent we saw last year](https://www.financedigest.com/more-than-a-third-of-people-think-cash-will-become-obsolete-in-the-next-25-years.html "More Than a Third of People Think Cash Will Become Obsolete in the Next 25 Years"), but we don’t know.

(Reporting by Jessica DiNapoli; additional reporting by Dhara Ranasinghe and Wayne Cole in Syndey; Editing by Ana Nicolaci da Costa, Pravin Char and Dan Grebler)


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