Market Summary – May 13, 2024

Last Week’s Summary

  • S&P 500 Index rose 1.89%
  • International Equities rose 1.57%
  • Emerging Markets rose 0.99%
  • U.S. 10-Year Treasury Yield fell to 4.50%
  • Initial Jobless Claims rose to 231k
  • U. of Mich. Sentiment fell to 67.4
  • U. of Mich. 1-Year Inflation rose to 3.5%

What to Watch for This Week

  • M, 5/13/24 NY Fed 1-Yr Inflation
  • T, 5/14/24 PPI, PPI Core
  • W, 5/15/24 CPI, CPI Core, Empire Manufacturing, MBA Mortgage Applications
  • Th, 5/16/24 Initial Jobless Claims, Housing Starts
  • F, 5/17/24 Leading Index

Weekly Market Recap

Equities wavered and bond yields rose responding to a report indicating a decline in U.S. consumer sentiment to a six-month low, accompanied by a rise in short-term inflation expectations.

Despite a slowdown in crucial sectors prompting speculation about policy easing. A choir of Federal Reserve officials reiterated the “higher-for-longer” stance, striving to realign inflation with the central bank’s 2% target.

Chair Jerome Powell, addressing the central bank’s May 1 meeting, suggested that policymakers would likely maintain elevated rates for a considerable period, expressing uncertainty about the timeline for confidence to warrant rate adjustments.

Notably, Powell dismissed concerns of “stagflation” in growth or inflation. This week saw a notably subdued data landscape, with Initial Jobless Claims rising higher than forecasted, fueling perceptions of a cooling labor market.

Furthermore, Friday’s University of Michigan consumer sentiment report indicated the lowest levels since last November, signaling a relatively pessimistic outlook among Americans for the near future.

Looking ahead, the upcoming week promises more stimulating news releases, with both Producer Price Index (PPI) and Consumer Price Index (CPI) reports for April scheduled, providing traders insights into the potential timing of the Fed’s initial policy adjustments.

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