Last Week’s Summary
- S&P 500 Index fell 2.05%
- International Equities fell 1.75%
- Emerging Markets fell 0.99%
- U.S. 10-Year Treasury Yield fell to 3.79%
- FOMC left rates unchanged
- Initial Jobless Claims fell to 249k
- Nonfarm Payrolls fell to 144k
- Unemployment Rate rose to 4.3%
What to Watch for This Week
- M, 8/5/24 ISM Services, S&P Global US Services PMI
- T, 8/6/24 Trade Balance
- W, 8/7/24 MBA Mortgage Applications
- Th, 8/8/24 Initial Jobless Claims, Wholesale Inventories
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 5, 2024
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