Last Week’s Summary
- S&P 500 Index fell 0.02%
- International Equities rose 0.03%
- Emerging Markets rose 0.28%
- U.S. 10-Year Treasury Yield rose to 3.94%
- ISM Services Index rose to 51.4
- Initial Jobless Claims fell to 233k
- S&P Global US Composite PMI fell to 54.3
What to Watch for This Week
- M, 8/12/24 NY Fed 1-Yr Inflation Expectations
- T, 8/13/24 PPI Final Demand, PPI Core
- W, 8/14/24 MBA Mortgage Applications, CPI, CPI Core
- Th, 8/15/24 Initial Jobless Claims, Empire Manufacturing
- F, 8/16/24 U. of Mich. Sentiment, U. of Mich. 1-Yr Inflation
Weekly Market Recap
The S&P 500 fell 1.8%, the Nasdaq 100 dropped 2.4%, and the Russell 2000 plummeted 3.5%. Wall Street’s “fear gauge,” the VIX, reached its highest level since March 2023. Meanwhile, 10-Year Treasury Yields declined by 18 basis points to 3.8%.
The stock selloff intensified, and bond yields fell as a weak jobs report heightened concerns that the Federal Reserve’s decision to maintain interest rates at a two-decade high could lead to a deeper economic slowdown.
These fears disrupted global trading, sparking a surge in volatility and prompting investors to retreat from riskier market segments. The S&P 500 experienced its worst reaction to jobs data in nearly two years. A sharp decline in key technology stocks pushed the Nasdaq 100 down over 10% from its peak, crossing the threshold for a market correction.
The rally in Treasuries extended for a seventh consecutive day, with traders anticipating that the Fed will cut rates by more than a full percentage point in 2024. Nonfarm payrolls increased by 114,000 – one of the weakest figures since the pandemic – and job growth for the previous two months was revised downward.
The unemployment rate unexpectedly rose for the fourth consecutive month to 4.3%, triggering a closely watched recession indicator.
Download Market Snapshot August 12, 2024
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