by Maurice (Mo) Spolan, Investment Research Analyst
Stocks were up around 2% last week, closing out July with gains near 6%, a very strong month of returns. Nonetheless, Q2 GDP fell 32.9% on an annualized basis, the fourth-greatest decline in the last 100 years, according to MFS Investments. Corporate profits are also in deterioration, as Q2 earnings have thus far arrived 36% below last year’s figures, the largest slump since 2008.

Tech stocks were in the spotlight as antitrust hearings investigated the extent to which economic power is concentrated in Amazon, Google, Facebook and Apple. Not ironically, such companies reported growing revenues in Q2 while the “brick-and-mortar economy” struggles gravely during the global pandemic. Tech stocks continue to hold an outsized position in the major indices and are therefore a major driver of the market’s resiliency in 2020.

Unemployment benefits officially expired on Friday while Congress remains in discussion to provide the next round of support. Though the two parties are still distant in their proposals, it is highly probable that a deal of some magnitude will be passed. Updates will be provided in future commentaries as news materializes.