The U.S. stock market gyrated substantially this week with the S&P 500 trading between 3130 and 3237. The S&P 500 has basically erased. All of the losses incurred during the Pandemic and stands within a few percent of its all time high just shy of 3400.
The Nasdaq 100 has in fact, eclipsed all time highs and is up double digits this year as technology stocks continue to soar. The biggest under performer however is the small cap segment of the market as measured by the Russell 2000 which stands down about 9% from its all time high as the global shut down of the economy takes its toll on smaller businesses.
On the commodities front, WTI continues to hold around $40/bbl as economies slowly reopen. But the highlight in the commodity space remains the precious metals. Gold held above $1,800 an ounce and closed the week at $1,812 while silver nears a breakout above $20/ounce. It closed at $19.74 an ounce.
The Gold silver ratio has fallen sharply this week as silver continues to outperform given that it is an industrial metal and precious metal (while Gold serves only as a precious metal). Back in April the ratio was at 110…..it now stands at 91 yet still near the upper end of its range over the past few years.