# Wall Street bounces, oil slides as markets mull murky economic picture Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-08-20 Category: INVESTING Category URL: https://financedigest.com/category/investing Meta Title: Global Economic Concerns Drive Stocks Higher Amid Meta Description: Stocks bounce back as oil falls and safe-havens like gold rise amidst Delta variant fears and Fed taper talk, shaping a murky economic outlook. URL: https://financedigest.com/wall-street-bounces-oil-slides-as-markets-mull-murky-economic-picturehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-08-20t051233z1lynxmpeh7j06wrtroptp4china-regulation-internet-1736837993637-compressed.jpg) By Pete Schroeder WASHINGTON (Reuters) -Stocks recovered ground on Friday amid concerns about global economic growth amid rising coronavirus cases, which continued to weigh down oil and boost safe-havens like gold. Wall Street bounced back after bumpy trading the last several days and a sell-off in Asia, with all three major indices higher around midday. The Dow Jones Industrial Average rose 0.79%, to 35,169.09, the S&P 500 gained 0.82% and the Nasdaq Composite added 1.05%. However, U.S. stocks were still set for their worst week since mid-June as the Delta variant, and chatter at the Fed about winding down stimulus, dampening [investor sentiment](https://www.financedigest.com/6-months-to-go-until-brexit-and-investor-sentiment-remains-bold.html "6 months to go until Brexit and investor sentiment remains bold"). The MSCI world [equity index](https://www.financedigest.com/six-securities-services-launches-new-equity-index-baskets.html "SIX Securities Services launches new Equity Index Baskets"), which tracks shares in 45 nations, rose 0.43%. We are seeing a relief [rally in European](https://www.financedigest.com/european-shares-rally-as-china-stimulus-lifts-recovery-hopes.html "European shares rally as China stimulus lifts recovery hopes") and U.S. [assets today,”](https://www.financedigest.com/4-ways-todays-investor-can-future-proof-their-assets.html "4 Ways Today’s Investor Can Future Proof their Assets") said Phil Guarco, global investment specialist at J.P. Morgan [Private Bank](https://www.financedigest.com/gucci-banks-on-private-salons-for-the-ultra-rich-to-revive-sales.html "Gucci banks on private ‘salons’ for the ultra-rich to revive sales"). “What’s at the root of the weakness? We are getting driven by increased ‘taper talk’ from the Fed, which has coincided with a [soft patch in economic data](https://www.financedigest.com/dollar-skids-after-soft-u-s-economic-data-impact-of-opec-cuts-fades.html "Dollar skids after soft U.S. economic data; impact of OPEC+ cuts fades") from China and the U.S. and forward looking Delta variant concerns.” A murky economic picture weighed on sentiment all week, setting a cautious tone [ahead of a meeting](https://www.financedigest.com/sterling-steadies-vs-dollar-ahead-of-boe-ecb-meetings.html "Sterling steadies vs dollar ahead of BoE, ECB meetings") of U.S. central bankers at Jackson Hole next week, with markets watching for any sign of monetary tightening in the [world’s biggest economy](https://www.financedigest.com/biggest-economy-in-the-world.html "Biggest Economy in the World"). Federal Reserve meeting [minutes released Wednesday showed Fed](https://www.financedigest.com/dollar-jumps-euro-dips-before-fed-minutes.html "Dollar jumps, euro dips before Fed minutes") officials preparing to ease back on stimulus by year’s end, provided the economic continues to recover as expected. Coronavirus concerns continued to [weigh down oil markets](https://www.financedigest.com/oil-markets-steady-as-investors-weigh-banking-crisis-russia.html "Oil markets steady as investors weigh banking crisis, Russia"), where the commodity was down for the seventh straight session. The prospect of new lockdowns, offices delaying returns to the office, and a surge in the safe-haven [dollar all contributed to drive oil](https://www.financedigest.com/oil-slumps-on-economic-data-stronger-u-s-dollar.html "Oil slumps on economic data, stronger U.S. dollar") to levels not seen in three months. Brent crude was last down 1.6% at $65.39 a barrel. U.S. crude was down 1.55% at $62.7 per barrel. [Economic and pandemic uncertainty](https://www.financedigest.com/combatting-economic-uncertainty-in-2023-with-the-payments-sector-2.html "Combatting economic uncertainty in 2023 with the payments sector") boosted several safe havens in the markets. The U.S. [dollar hit a fresh 9-1/2 month](https://www.financedigest.com/european-shares-hit-nine-month-high-dollar-wobbles-after-powell-remarks.html "European shares hit nine month high, dollar wobbles after Powell remarks") high Friday before dipping slightly. The dollar index, which tracks the greenback versus a basket of six currencies, was down 0.12% around midday, but was in a position to [see its strongest week](https://www.financedigest.com/global-equity-funds-see-biggest-weekly-outflow-in-five-weeks.html "Global equity funds see biggest weekly outflow in five weeks") in two months. Gold also enjoyed a risk-averse boost Friday, with spot gold [prices rising](https://www.financedigest.com/oil-prices-rise-on-u-s-drawdown-chinese-fears-weigh.html "Oil prices rise on U.S. drawdown, Chinese fears weigh") 0.19% to $1,783.49 an ounce. U.S. gold futures [edged 0.2% higher](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") to $1,787 per ounce. U.S. Treasury yields were on [track to end the week](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") lower on stronger demand as well. Benchmark 10-year yields US10YT=RR were up slightly at 1.2567% but remain down from 1.283% last week. (Additional reporting by Alun John; Editing by David Holmes and Nick Zieminski) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---