Last Week’s Summary
- S&P 500 Index fell 0.96%
- International Equities fell 1.90%
- Emerging Markets fell 1.75%
- U.S. 10-Year Treasury Yield rose to 4.24%
- Initial Jobless Claims fell to 227k
- Leading Index fell to -0.5%
- U. of Mich. Sentiment rose to 70.5
- U. of Mich. 1-Yr Inflation fell to 2.7%
What to Watch for This Week
- M, 10/28/24 Dallas Fed Manf. Activity
- T, 10/29/24 Conf. Board Consumer Confidence, JOLTS Job Openings
- W, 10/30/24 MBA Mortgage Applications, GDP Price Index, ADP Employment Change, PCE Core
- Th, 10/31/24 Initial Jobless Claims, Personal Income, Personal Spending
- F, 11/1/24 Change in Nonfarm Payrolls, Unemployment Rate, S&P Global US Manu PMI
Weekly Market Recap
Stocks initially rallied but ultimately faded as banks weighed on the broader market, offsetting tech sector gains. The S&P 500 ended flat after climbing nearly 1% intraday, closing out its first down week since early September.
Financial stocks took a hit, with New York Community Bancorp sliding 8.3% on a weakened outlook, while Goldman Sachs fell 2.3% and JPMorgan Chase dropped 1.2%.
Five of the “Magnificent Seven” tech giants report earnings next week, with Alphabet, Meta, and Amazon expected to post double-digit growth driven by ad spending. Apple might see a boost from Chinese sales of its new iPhones, while Microsoft’s earnings call could address its competitive position in artificial intelligence.
As earnings season unfolds, traders are bracing for the upcoming U.S. presidential election and pivotal economic reports. Treasuries saw muted movements after a volatile week as investors remained cautious ahead of key economic and political events.
This week will bring fresh economic data, including the Fed’s preferred inflation metric (PCE), GDP figures, and jobs data-three significant indicators preceding the Fed’s second-to-last meeting of the year, to hopefully help the market get a better gauge for the Federal Reserve’s potential for rate cuts set to be announced on the heels of the upcoming election.
60-Second Breakdown:
Redwood Senior Analyst Michael C. Sasaki, CFA® discusses recent market performance and explains this week’s chart.
