Stocks had modest losses on light trading volume Friday, with Amazon dropping the most in more than a year after reporting its first quarterly revenue miss in three years and providing disappointing guidance. But the major averages wrapped up a strong month, even as volatility has increased alongside concerns about the economic recovery with the spreading of the COVID-19 delta variant.
Sweeping crackdowns across China continued to send shockwaves across financial markets, with investors finding themselves in the firing line of some of the nation's hottest sectors. Another contentious meeting between Washington and Beijing proved unsuccessful on Monday, with Vice Foreign Minister Feng saying the relationship was at a "dead end" and risks "serious consequences." He even presented U.S. Deputy Secretary of State Wendy Sherman with two lists of "red lines" that were necessary to stabilize ties going forward.
This week may bring the next round of US debt ceiling concerns. The Treasury will use the first of its so-called "extraordinary measures," which will suspend sales of securities that help states and municipalities invest bond proceeds. Others will take months to kick in, and starting in October or November, the Congressional Budget Office predicts the Treasury will run out of cash. While raising the debt ceiling has turned into a bitter partisan issue in recent years, both sides have always reached a late deal to avoid the country going into default.
On Friday, the Labor Department will release data that will show whether a hiring burst in June continued in July. Economists will also learn whether the reopening of the economy is drawing back the millions of workers who left the labor force during the pandemic.
Robinhood, the mobile brokerage company that is popular amongst young people, went public last week under the ticker HOOD. The Wall Street Journal reported that Robinhood sold more than 300,000 shares to its customers through their IPO access service at $38/share, which valued the company at $32 billion. It closed that day down 8% at 34.82.
