Market Update – 8/30/21


CGP Grey |

Thomas Ghita, Business Editor

The U.S. stocks rose, for the week of Aug. 23 to Aug. 30, as technology stocks continue to rise and carry the major indexes.

The Dow Jones Industrial Average increased by 0.1% to 35399.84 from the week of Aug. 23 to Aug. 30, the S&P 500 increased by 1.1% to 4528.79 in the same period and the NASDAQ Composite posted the largest gains, increasing 2.1% to 15265.89 in that period.

Technology and other growth stocks started to rise following comments from the federal reserve, playing down fears regarding increasing inflation.

“The Fed said that it will taper but it will not raise interest rates, which is good for the growth stocks,” Chief U.S. equity Strategist at BCA Research Irene Tunkel said.

More economically sensitive sectors, such as financial institutions and energy companies saw losses. This came in part as a result of the news regarding the federal reserve and partly because of increasing fears regarding the Delta variant of COVID-19.

The stocks of financial institutions such as J.P. Morgan & Co. and Wells Fargo & Company fell 1.6% and 2.8%, respectively.

A stock to watch out for in the coming weeks is that of Inc. The stock has seen an increase of 138% over the past week, jumping from $13.30 to $31.36. stock has the potential to be another so-called “meme-stock,” with many traders on the online Reddit forum WallStreetBets pushing for a short squeeze in an attempt to drive the stock’s price up.

Looking past stocks and moving into the commodity market, oil futures have been on the decline following Hurricane Ida, as safety measures taken by crude producers regarding the storm saw the shutdown of oil production in the southern U.S.

This combined with anxiousness regarding the meeting of the Organization of the Petroleum Exporting Countries. They are planned to meet on Sept. 1 to discuss the global market for oil and the direction demand for the commodity is expected to go as the pandemic continues.

As of right now, however, OPEC is expected to increase production by over 400,000 barrels a day. This comes as they forecast a supply deficit for the rest of 2021. All of this news seems to point in the direction of the oil market rebounding, and Wall Street agrees.

“I’m looking for oil production coming back in a week and refineries coming back in two weeks,” Robert Yawger, director of the futures division at Mizuho Securities, said.

This rebound is exactly what is causing oil prices to decline. West Texas Intermediate crude futures have fallen 7.5% for the month of August.

Looking forward to next week, OPEC’s comments and how oil suppliers in the United States adjust to the effect of Hurricane Ida will determine what direction the oil market will go in.’s stock should be kept an eye on as well as a potential short squeeze could occur.