Market Summary – October 9, 2023

Last Week’s Summary

  • S&P 500 Index rose 0.52%
  • International Equities fell 1.85%
  • Emerging Markets fell 1.61%
  • U.S. 10-Year Treasury Yield rose to 4.80%
  • S&P Global U.S. Manu. PMI rose to 49.8
  • ADP Employment Change fell to 89k
  • Initial Jobless Claims rose to 207k
  • Change in Nonfarm Payrolls rose to 336k
  • Unemployment Rate stayed at 3.8%

What to Watch for This Week

  • T, 10/10/23 Wholesale Inventories
  • W, 10/11/23 MBA Mortgage Apps, PPI, PPI Core, FOMC Meeting Minutes
  • Th, 10/12/23 Initial Jobless Claims, CPI, CPI Core
  • F, 10/13/23 U. of Mich. Sentiment, U. of Mich 1-Year Inflation Expectations

Weekly Market Recap

The S&P 500 made a strong advance of 1.2% Friday, putting an end to its four-week losing streak. This positive turn was attributed to a last-minute agreement reached with the autoworker’s union, which bolstered market sentiment.

The Nasdaq 100 surged by 1.7%, propelled higher by heavyweight tech giants such as Microsoft Corp., Apple Inc., and Nvidia Corp. Yields on 10-and 30-Year Treasuries, which reached highs not seen since 2007 at around 4.9% and 5.1%, respectively, before retreating slightly by the end of the week.

The bond market’s recent selloff has been exerting downward pressure on various risk assets, spanning from stocks to corporate credit, driven by concerns that central banks might maintain elevated interest rates for a longer duration than initially anticipated.

In a surprising turn of events, the employment situation saw a significant boost, with 336,000 jobs added in September, more than double what economists had predicted. This unexpected surge prompted swaps traders to price in a roughly 50/50 chance of a rate hike by December.

The unemployment rate, according to data from the BLS, held steady at 3.8%. Oil experienced its most substantial weekly decline since March, closing the week below $83, while gold recorded its second consecutive weekly slump.

Looking ahead to the next week, all eyes will be on Thursday’s release of consumer pricing data, along with eagerly awaited earnings reports from some of Wall Street’s largest financial institutions, including JPMorgan Chase & Co., Wells Fargo & Co., and Citigroup Inc.

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