Stocks hold up to one-two punch
Stock investors got jolted in a zigzag week as the Standard & Poor’s 500-stock index plunged below a support level unseen since October amid concern over China and Greece, only to erase its losses with a big rally.
“It was a volatile week, that’s for sure,” said Dan Greenhaus, chief global strategist at BTIG. “Clearly investors are focused squarely on Greek negotiations and the Chinese stock market, but the ramifications of both appear to be limited, hence the end-of-the week rally.”
The prospect of a deal to end a standoff between creditors and Greece’s Syriza-led government brought relief to financial markets. After months of escalating tension, Greece offered to meet most of the demands made by creditors in exchange for a bailout of $60 billion. The proposal still faced a weekend of political wrangling.
Greece’s financial crisis and China’s equity market turmoil have diverted attention from U.S. economic data and the path of the Federal Reserve’s monetary policy, as investors grow concerned about global growth.
Fed Chair Janet L. Yellen said in a speech that she still expects to raise interest rates this year and repeated that the subsequent pace of increases will be gradual.
The Treasury will sell $24 billion in both three-month and six-month bills Monday. They yielded 0.025 percent and 0.10 percent in when-issued trading. The Treasury will also sell four-week bills Tuesday.
Editor’s note: Going forward, our weekly composite stock listing highlights companies based in Washington or with a strong presence here. The rest of the table shows firms as ranked by market capitalization. And we’ve added year-to-date data because readers told us it would be useful.