Weekly Client Letter – October 7, 2024

The relationship between job openings and the stock market has historically been strong, with both moving in tandem as indicators of economic health. However, recent data show a notable divergence—job openings have been falling while the S&P 500 continues to climb.

This suggests that while economic fundamentals may be softening, the stock market is behaving differently, perhaps driven by other factors such as corporate earnings, investor sentiment, or expectations of lower interest rates.

This serves as a reminder that even if you have insight into economic trends, markets can react in unexpected ways. It’s crucial to remain diversified as market behavior can often defy predictions.

Job Openings & Stocks Decouple

Weekly Client Letter - October 7, 2024
Source: Bloomberg, Redwood. Data as of 10/04/2024. Date Range from 9/24/2001 – 10/4/2024.
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60-Second Breakdown: October 7, 2024

Redwood Senior Analyst Michael C. Sasaki, CFA® discusses recent market performance and explains this week’s chart.

Market Summary

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