Markets hit the “sell-button” early in the week. Was this a late summer rebalance or a sign of things to come?
Monday
S&P 500 0.01% | NASDAQ 0.03%
Markets kicked off the week without much movement in either direction, eventually closing flat. In a surprise move, healthcare stocks were the beneficiary of large inflows from fund managers. This week’s focus will shift to the press conference on Friday regarding Federal Reserve Policy.
Tuesday
S&P 500 0.59% | NASDAQ 1.46%
Notable tech stocks took a blow as the Artificial Intelligence (AI) rally lost its steam. Flows moved to more defensive sectors such as real estate. The sell-off preempted the Federal Reserve Symposium held in Jackson Hole, WY.
Wednesday
S&P 500 0.24% | NASDAQ 0.67%
Equities continued to trim recent gains as treasury yields lowered mid-week. The DOW Jones remained stable which is heavy value stocks, continuing the shift away from growth stocks. The countdown to the conclusion of the Federal Reserve Symposium showed a cautious approach.
Thursday
S&P 500 0.40% | NASDAQ 0.34%
The S&P500 slipped for a 5th straight day as tech companies sunk major indexes again. The jobless claims showed signs of weakness and Wal-Mart (WMT) earnings disappointed. A slowdown for big box may be a sign of things to come with consumer sentiment. To the contrary Lowe’s (LOW) and Target (TGT) came in at forecasts.
Friday
S&P 500 1.52% | NASDAQ 1.88%
The highly anticipated press conference finally arrived where the Federal Reserve Board (FRB) Chair gave his remarks. Markets celebrated the more dovish tone and reversed course from trading earlier in the week. Volatility indexes fell sharply.
Conclusion
S&P 500 0.27% | NASDAQ 0.58%
The FRB meets 8 times each year with the annual symposium falling between the July and September meeting. The symposium gives economists and investors the opportunity to gauge policy direction heading into the end of the 3rd quarter. Markets were looking for signs of easing rates and Friday’s remarks signaled that could be coming (as soon as September). Chair Powell continues to focus on a data-driven focus while deflecting issues of political partisanship. Key retailers noted nominal slowdowns, so tariff impacts are still top-of-mind. The job market will be closely watched as well. There was plenty of sector rotation leading up to the press conference for the week. We should expect to see more profit pulling as monetary policy changes through year-end.
~ 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.