Market Summary – October 30, 2023

Last Week’s Summary

  • S&P 500 Index fell 2.52%
  • International Equities fell 0.89%
  • Emerging Markets fell 0.61%
  • U.S. 10-Year Treasury Yield fell to 4.83%
  • GDP rose to 4.9%
  • Initial Jobless Claims rose to 210k
  • Personal Income fell to 0.3%
  • Personal Spending rose to 0.7%

What to Watch for This Week

  • M, 10/30/23 Dallas Fed Manf. Activity
  • T, 10/31/23 MNI Chicago PMI, Conf. Board Consumer Confidence
  • W, 11/1/23 FOMC Rate Decision, MBA Mortgage Apps
  • Th, 11/2/23 Initial Jobless Claims, Durable Goods Orders
  • F, 11/3/23 Change in Nonfarm Payrolls, Unemployment Rate

Weekly Market Recap

Stocks struggled to recover as the S&P 500 extended its decline from its July peak to 10%, entering a “correction” phase. Volatility returned as news broke of Israeli forces expanding their operations in Gaza, leading to the worst week for the U.S. stock benchmark in a month. U.S. stocks are on track for their third consecutive month of declines, a trend not seen since the first three months of 2020 during the onset of the pandemic.

Over two-thirds of companies in the S&P 500 Index are trading below their 200-Day Moving Averages, indicating widespread market distress. Lackluster earnings, combined with high-interest rates and rising bond yields, have contributed to this pain.

In addition, U.S. near-term inflation expectations rose to a Five-Month High in October, driven by concerns about higher gas prices, further dampening economic outlooks. The Federal Reserve’s preferred measure of underlying inflation reached a Four-Month High in September, and consumer spending showed improvement, leaving the possibility of another interest-rate hike in the coming months.

This upcoming week, the market will closely watch the second-to-last Federal Reserve meeting of the year and the continuation of earnings season, with Apple’s report scheduled for Thursday. Meanwhile, Treasury Two-Year Yields retreated as traders remained composed in the face of rising inflation measures.

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