Market Summary – January 8, 2024

Last Week’s Summary

  • S&P 500 Index fell 1.50%
  • International Equities fell 1.47%
  • Emerging Markets fell 2.09%
  • U.S. 10-Year Treasury Yield rose to 4.04%
  • Initial Jobless Claims fell to 202k
  • Change in Nonfarm Payrolls rose to 216k
  • Unemployment Rate stayed at 3.7%

What to Watch for This Week

  • M, 1/8/24 NY Fed 1-Yr Inflation Expectations
  • T, 1/9/24 Trade Balance
  • W, 1/10/24 MBA Mortgage Applications, Wholesale Inventories
  • Th, 1/11/24 CPI, CPI Core, Initial Jobless Claims
  • F, 1/12/24 PPI, PPI Core

Weekly Market Recap

Equities faced a somber beginning to the year, with traders maintaining their bets on a potential March interest rate cut amid a mix of employment and U.S. service sector data. The S&P 500 managed a modest 0.2% gain on Friday, concluding the week as the worst for the stock market since late October, falling 1.5%.

The Benchmark Index halted its Nine-Week bull run, while the Nasdaq 100 eked out a slight advance as well on Friday, rising 9 basis-points, following five consecutive days of losses. The initial blow to stocks and bonds from a robust jobs report on Friday was followed by a brief rebound.

This turnaround was triggered by data indicating a slowdown in the U.S. service sector in December, though it remained above the critical threshold signaling expansion. Treasuries experienced a volatile session, ending lower on Friday and marking a weekly decline.

The 10-Year Yield rose to 4.05%. U.S. bonds were subject to fluctuations following the release of data revealing a larger-than-expected increase of 216,000 in nonfarm payrolls, coupled with an unchanged unemployment rate of 3.7% in December.

Consumer inflation for the year, scheduled to be announced on Thursday, is projected at 3.2%. The upcoming Friday will be crucial for investors as JPMorgan Chase & Co. and other major banks commence their earnings reports in the financial sector.

Meanwhile, oil prices climbed, solidifying a weekly gain, driven by escalating tensions in the Middle East and North Africa, which overshadowed signs of waning U.S. demand.

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