Last Week’s Summary
- S&P 500 Index fell 2.91%
- International Equities fell 2.17%
- Emerging Markets fell 2.08%
- U.S. 10-Year Treasury Yield rose to 4.43%
- FOMC left rates unchanged at 5-1/4 to 5-1/2 percent
- Initial Jobless Claims fell to 201k
What to Watch for This Week
- M, 9/25/23 Chicago Fed Manf. Activity
- T, 9/26/23 Conf. Board Consumer Confidence
- W, 9/27/23 MBA Mortgage Applications, Durable Goods Orders
- Th, 9/28/23 Initial Jobless Claims, GDP Price Index
- F, 9/29/23 Personal Income & Spending, MNI Chicago PMI, U. of Mich Sentiment
Weekly Market Recap
Treasuries rebounded while stocks struggled during a tumultuous week marked by investor anticipation of the Federal Reserve adopting a prolonged hawkish stance. In the wake of the FOMC’s decision to maintain interest rates, several Fed officials reinforced Chairman Powell’s commitment to a sustained period of elevated rates, making it clear that further rate hikes remained a possibility.
Amid mounting concerns about inflation, exacerbated by the recent surge in oil prices and the Fed’s reluctance to signal any imminent rate reductions, traders remained on edge. Ten-Year Yields, after briefly surpassing 4.5% for the first time since 2007, experienced a slight decline to end the week.
The S&P 500 posted its largest weekly decline since March and fell below its key 100-Day Moving Average – which is seen as a bearish signal by some technical analysts. Wall Street’s “fear gauge” – the VIX Index of stock volatility – extended its surge. The technology sector, which had previously borne the brunt of the market downturn, exhibited relatively stronger performance.
The United Auto Workers announced successful negotiations with Ford Motor Co., averting further disruptions to the company, even as they extended their strike to encompass 38 additional facilities operated by rivals General Motors Co. and Stellantis.
On a positive note, jobless claims reached their lowest levels since January, underscoring the resilience of the U.S. labor market in the Federal Reserve’s ongoing battle against inflation.
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