Last Week’s Summary
- S&P 500 Index rose 0.84%
- International Equities rose 0.05%
- Emerging Markets rose 0.74%
- U.S. 10-Year Treasury Yield fell to 4.23%
- Initial Jobless Claims fell to 230k
- U. of Mich. Sentiment fell to 69.5
- U. of Mich. 1 Yr. Inflation rose to 3.5%
What to Watch for This Week
- M, 8/28/23 Dallas Fed Manf. Activity
- T, 8/29/23 Conf. Board Consumer Confidence
- W, 8/30/23 GDP, MBA Mortgage Applications, ADP Employment Change
- Th, 8/31/23 Initial Jobless Claims, PCE & PCE Core
- F, 9/1/23 Nonfarm Payrolls, Unemployment Rate
Weekly Market Recap
Stocks surged last week, marking their strongest performance since July and breaking free from the three-week downtrend that had gripped markets throughout August. Traders closely analyzed the array of statements made by Federal Reserve officials during the annual Jackson Hole symposium.
Jerome Powell emphasized a cautious approach to potential interest rate increases while indicating a commitment to maintaining a tighter monetary policy for an extended duration. Powell also underscored the formidable challenge of steering inflation back to its target, acknowledging that this endeavor still has a significant distance to cover.
Meanwhile, the yield on 10-Year Treasuries remained steady at around 4.2%, while shorter-term Treasury yields experienced modest increases. Market sentiment now reflects a probability exceeding 60% of witnessing one more interest rate hike before the year’s end. This upcoming week holds significant importance for market participants, as it will unveil key data points.
On Thursday, the release of the Personal Consumption Expenditures (PCE) Index, the Federal Reserve’s preferred measure of inflation, will be closely scrutinized. Additionally, the latter half of the week will bring fresh employment figures just before the holiday weekend.
These indicators are expected to offer insights into whether the market is poised for a rate hike in September, or if such a move might be postponed until the November meeting.
Download Market Snapshot August 28, 2023
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