 | AUTHOR: Jason Roque, CFP®, APMA®, AWMA® TITLE: Investment Adviser Rep – CCO TAGS: S&P 500, NASDAQ, FRB, Rates, Oil, CPI, PPI |
The market rebounded last week. Is it a sustainable shift higher?
Monday S&P 500 1.41% | NASDAQ 2.20%
Electronics led the week as the Consumer Electronics Show starts on Tuesday. Major announcements on Monday buoyed prospects for future growth in the consumer market. The rally reversed much of the losses from the prior week.
Tuesday S&P 500 0.15% | NASDAQ 0.09%
Oil stockpiles fell more than expected. Yields in the treasury market flatten equity returns as the likelihood of future rate cuts was reduced. The Federal Reserve Bank (FRB) has said they are likely to lower rates three times in 2024. The markets have six cuts priced in at this point.
Wednesday S&P 500 0.57% | NASDAQ 0.75%
Equity markets rallied on Wednesday in advance of inflation data due out Thursday. Treasury interest rates firmed on the day, which is usually bearish for growth stocks, but they led the way higher. This may be inflationary bets on tomorrow’s data coming in weaker than expected.
Thursday S&P 500 0.07% | NASDAQ 0.00%
Continuing and initial jobless claims both came in under estimates. This shows continued strength in the job market. The Consumer Price Index (CPI) came in hotter than expected, a miss for tech stocks trades Wednesday. The combination of data released on Thursday signals less reason for the Federal Reserve Board (FRB) to lower interest rates. Markets were little moved on the news.
Friday S&P 500 0.08% | NASDAQ 0.02%
Producer Price Index (PPI), a leading indicator of future inflation, came in weaker than expected. This is a good signal for future inflation readings. Financial Stocks got underway for earnings season on Friday to little fanfare.
Conclusion S&P 500 1.84% | NASDAQ 3.09%
Equity markets recovered much of the losses from the prior week. It is a little deceiving as the bulk of gains were made on Monday. Quarter four earnings are now underway, so this should provide renewed energy around market activity. GDP readings keep weakening, but remain above 2%, so earnings should still be promising.
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