DFG Navigator Archives | October 2024

Your Capital Markets Snapshot: S&P 500 and Dow Continued to Reach Record Highs

Last week, the S&P 500 and Dow continued to reach record highs, driven by strong quarterly earnings and economic data. The September Retail Sales report exceeded expectations, boosting the SPX by 0.8% for the week. Additionally, the semiconductor sector saw mixed results, with ASML's cautious guidance causing a dip, while Taiwan Semiconductor's robust results lifted the sector. The Russell 2000 also performed well, setting a fresh two-year high. Overall, the market sentiment remains bullish, supported by positive economic indicators and strong earnings.

Your Capital Markets Snapshot: Equity Markets Trended Upwards

Last week, equity markets trended upwards, with the S&P 500 continuing to reach record highs, driven by confidence in a strong U.S. economy. Despite rising oil prices, yields, and geopolitical tensions, stocks rebounded after initially falling to start the week. The Consumer Price Index (CPI) report came in slightly above expectations, and Initial Jobless Claims hit a one-year high but may be the temporary result of impacts from Hurricane Helene and the Boeing strike. Bond yields rose, with the 10-year Treasury yield increasing to 4.08% from 3.98%, as markets begin to cool down on expectations of continued aggressive rate cuts from the Federal Reserve and react to strong economic data, such as the Atlanta Fed's Q3 GDP forecast being revised up to 3.2%.

Your Capital Markets Snapshot: Markets Bouncing Around But Trending Down

An eventful week last week led to markets bouncing around but trending down for most of the week, resulting from increasing tensions in the Middle East and the East Coast port strike. After the strike tentatively ended late Thursday and a strong jobs report on Friday, we saw markets recover and post modest gains for the week. While the Federal Reserve seeks to balance its dual mandates of stable prices and full employment, last week may have some wondering if inflation concerns are truly in the rearview mirror as oil prices increased following Iran’s missile attack as well as US labor strikes becoming more common and leading to potentially higher wages. We will get inflation data next week that can help answer some of these questions, but for now the US economy appears to be on firm footing after posting the strongest job gains in the past six months paired with upward revisions to July and August’s job report numbers.

Your Capital Markets Snapshot: Equity Markets Saw Modest Gains

Last week, the equity markets saw modest gains, with the three major US indices rising between 0.6% to 1.0% due to positive economic data and a series of stimulus measures launched by the Chinese government. The Chinese stimulus measures led to significant gains in Chinese stocks, which in turn benefited several U.S. industries, such as materials and industrials. Additionally, the U.S. Federal Reserve's preferred inflation gauge showed further easing of price pressures, contributing to the positive market sentiment. Despite the growth in equity markets, it was another flat week for US fixed income markets while international bonds saw a modest 0.5% gain.

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