Executive Mosaic’s GovCon Index had a weak start in August, evidenced by losses in the first seven trading days. Still, the index tracking the stock performances of 30 major government contractors recovered from the slump to register a second straight winning week this month.
After alternating between gains and losses during the week and closing higher at $5,409.28 Friday, GCI’s overall week-on-week gain is 1.25%. The Dow Jones Industrial Average (+1.3%), S&P 500 (+1.4%) and Nasdaq Composite (+1.4%) moved the same way but eventually scored more than one percent gains for the week.
The GCI snapped its 10-day winning streak on Tuesday, although it posted gains in three of five trading sessions. V2X (NYSE: VVX) was the best performer for the week, advancing 19.19% in five days following a significant task order win with the U.S. Army. Another notable winner was Kratos Defense & Security Solutions (Nasdaq: KTOS), with +7.61%.
The countdown to a rate cut began on Friday following Fed Chairman Jerome Powell’s speech at the economic symposium in Jackson Hole. He said the first cut is coming in September.
Meanwhile, the announcement might trigger a new bull market on Wall Street. GovCon Index stocks could also see a bull run. As of August 23, 2024, the index is up 15.87% year-to-date.
Check out last week’s market reports for more information on daily GovCon Index performance. To view the full list of tracked companies, click here.
