Last Week’s Summary
- S&P 500 Index rose 0.64%
- International Equities rose 4.25%
- Emerging Markets rose 6.18%
- U.S. 10-Year Treasury Yield fell to 3.75%
- Initial Jobless Claims fell to 218k
- Core PCE fell to 2.7%
- Personal Income & Spending fell to 0.2%
- U. of Mich. Sentiment rose to 70.1
What to Watch for This Week
- M, 9/30/24 MNI Chicago PMI
- T, 10/1/24 S&P Global US Manufacturing PMI, ISM Manufacturing
- W, 10/2/24 ADP Employment Change, MBA Mortgage Application
- Th, 10/3/24 Initial Jobless Claims, Durable Goods Orders, ISM Services Index
- F, 10/4/24 Change in Nonfarm Payrolls, Unemployment Rate
Weekly Market Recap
U.S. stocks extended their winning streak for a third consecutive week, even as Friday saw a modest pullback. Investors remained optimistic, reassured that the economy is cooling at a steady pace without tipping into a recession.
Treasuries rallied as fresh data reinforced expectations of upcoming interest rate cuts by the Federal Reserve. The 10-Year Yield hovered near 3.75%, marking a broad decline across the curve. The Fed’s preferred measure of core inflation rose only slightly in August, along with inflation-adjusted consumer spending, aligning with earlier data this week that suggested steady economic health.
On Friday, a report on U.S. consumer sentiment echoed the prevailing optimism in the market. Despite a heavy flow of data, traders continue to split their bets on whether the Fed will opt for a quarter-point or half-point rate cut at its next meeting.
Economists now project inflation will reach the Fed’s 2% target by next year. Elsewhere, China’s CSI 300 Index wrapped up its strongest week since 2008, bolstered by a series of daily stimulus announcements that lifted market sentiment.
In Europe, stocks hit a fresh all-time high on Friday, capping off their best week in over four months as several central banks, including those in Switzerland, Mexico, Hungary, and the Czech Republic, also lowered interest rates, contributing to the positive market mood.
The release of key jobs data next week will offer further insights into the labor market, as markets close out the third quarter and prepare for the final stretch of the year.
60-Second Breakdown:
Redwood Senior Analyst Michael C. Sasaki, CFA® discusses recent market performance and explains this week’s chart.
