The week started hot but ended mixed. Will markets buck the seasonal trend this year?
Monday
S&P 500 1.54% | NASDAQ 2.27%
Monday provided little economic data as attention focused on a draft by the Senate to end the government shutdown. Big tech names caught a bid from last week’s sell-off. A resolution will be welcomed in the near term.
Tuesday
S&P 500 0.21% | NASDAQ 0.25%
Chances of a December rate cut have dropped meaningfully from just 3 weeks ago. ADP Payroll released data showing a second straight week of negative job figures. Stocks ended mixed on the day.
Wednesday
S&P 500 0.06% | NASDAQ 0.26%
Major indexes were flat or slightly lower except for the DOW Jones (DOW) which climbed to record highs. The move is a sign of a rebalance from growth to value stocks, at least for now. The spending bill was passed by the House and was later signed by the President after markets closed.
Thursday
S&P 500 1.66% | NASDAQ 2.29%
The spending resolution did not necessarily provide certainty for markets after its passage, as was expected. Some agencies will go through the gauntlet again before the end of January. Growth stocks, meanwhile, took a beating on the day.
Friday
S&P 500 0.05% | NASDAQ 0.13%
After a quiet week with little economic data, markets ended the week relatively unphased. Questions will certainly revolve around the timing and release of delayed government data. As that unfolds, time will tell on future rate cuts and developments in the labor market.
Conclusion
S&P 500 0.08% | NASDAQ 0.45%
Markets followed a similar pattern from the prior week as technology took the brunt of the selling again. Equities remain strong as a rotation occurred in favor of value stocks, healthcare, and energy. The noticeable laggards were in communication stocks, utilities and consumer discretionary. If discretionary spending slows, it will likely be due to a more budget conscious consumer this holiday season. The good news is that markets were business as usual during the almost 6 weeklong shutdown, which is common. Many workers will receive back pay and airline traffic will be back online just in time for seasonal travel. The coming weeks will test markets patience when, and if, certain data is officially released. Companies, on the other hand, are expecting more tepid demand this year.
~ Your Future… Our Services… Together~
Your interest in our articles helps us reach more people. To show your appreciation for this post, please “like” the article on one of the links below:
FOR MORE INFORMATION:
If you would like to receive this weekly article and other timely information follow us, here.
Always remember that while this is a week in review, this does not trigger or relate to trading activity on your account with Financial Future Services. Broad diversification across several asset classes with a long-term holding strategy is the best strategy in any market environment.
Any and all third-party posts or responses to this blog do not reflect the views of the firm and have not been reviewed by the firm for completeness or accuracy.