Markets refueled and took off again this week. Will they continue to push the pedal down or will they be getting off at the next exit?
Monday S&P 500 0.39% | NASDAQ 0.60%
Markets began to rebound to start the week as the prevailing sentiment has teeter tottered over the past 3 weeks. Several changes have been revealed across asset classes over this span. Cryptocurrency has moved higher, once again, while gold prices have fallen from their previous high and the big players in the tech space continue to lead.
Tuesday S&P 500 0.40% | NASDAQ 1.04%
The push higher continued into Tuesday as GDP projections have inched up for the 4th Quarter. Markets are seeking more clarity as to the size and frequency of rate cuts although the broad consensus is that rates will continue a downward trend.
Wednesday S&P 500 0.00% | NASDAQ -0.11%
Notable companies such as Nvidia and Target released earnings on the day. The former has been center stage for some time while the latter is often an indicator of consumer spending habits. Consumer spending remains stable but the lower earnings report by the Big Box store may be a sign of a change for a more price-conscious consumer going into the holidays.
Thursday S&P 500 -0.53% | NASDAQ -0.03%
Markets drove higher for the day as existing home sales went up even against a backdrop of higher interest rates. Price stabilization in the real estate market and low competition coupled with increased wages may be the contributing factor as rates may not go down as quickly as originally thought. The 10-year Treasury has also held steady in the past week as the Federal Reserve appears to be in no rush to do their next rate cut.
Friday S&P 500 0.35% | NASDAQ 0.16%
Markets moved higher to close out the week as DOW Jones Industrial closed at a record high on optimism of the economic forecast related to job strength figures and consumer resilience.
Conclusion S&P 500 1.68% | NASDAQ 1.73%
Markets led a resurgence from the prior week and showed no signs of stopping. There were several positive takeaways for trading this week as there were no major economic blemishes to note. It is true that tech companies continue to be in the limelight as they are in competition for market dominance; however, important staple companies have proven to show signs of strength as holes continue to be poked in the theory of an economic stall. Retailers’ and consumer sentiment have shown that spending is not showing signs of stalling but rather the opposite. This scenario will continue to spur on growth while testing the resolve of an economy that is just finishing the last lap in the race towards lower inflation. High employment, lower inflation, and sustained spending will be the catalyst for shorter-term growth in this final stretch. This year’s road trip has had its fair share of pit stops and detours but, one thing is for sure, we are almost to our destination.
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