Market Pulse

Market Pulse

September 3, 2024

Market views heading into the week highlight what we're watching and important news ahead.

Investment Advisory Group

Truist Advisory Services, Inc.

A look back

  • The S&P 500 gained 0.3% as the Technology sector struggled and Financials, Industrials, and Materials led the way. International developed markets modestly outperformed the S&P 500.
  • The yield curve steepened and ended the week very close to becoming un-inverted. The 10-year yield rose to 3.91%, now just below the 2-year yield at 3.92%.
  • The Federal Reserve’s preferred inflation gauge, Core Personal Consumption Expenditures (PCE), showed prices climbed at an annual rate of 2.6% in July, just below consensus estimates.

A look ahead

  • The highlight of the week will be the August employment report set to be released on Friday. This is expected to be a key input in the Federal Reserve’s decision to cut rates 25 or 50 basis points at the next policy meeting.
  • In a busy week for economic data, investors will keep a close eye on the ISM Manufacturing and Services indices for more clues on the strength of the economy.
  • Economic Releases: ISM Manufacturing and Services, JOLTS, Factory Orders, Trade Balance, Unemployment Rate, Nonfarm Payrolls.

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The latest research & insights

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    Component ID : "accordionGridLayout-1624256768"
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    All information is as of title date unless otherwise noted. This document was prepared for clients Truist Bank for informational purposes only. This material may not be suitable for all investors and may not be redistributed in whole or part. Neither Truist Bank, nor any affiliates make any representation or warranties as to the accuracy or merit of this analysis for individual use. Information contained herein has been obtained from sources believed to be reliable, but are not guaranteed. Comments and general market related projections are based on information available at the time of writing and believed to be accurate– are for informational purposes only, are not intended as individual or specific advice, may not represent the opinions of the entire firm and may not be relied upon for future investing. The views expressed may change at any time. The information provided in this report should not be considered a recommendation to purchase or sell any financial instrument, product or service sponsored or provided by Truist Bank or its affiliates or agents. Investors are advised to consult with their investment professional about their specific financial needs and goals before making any investment decisions. Past returns are not indicative of future results. An investment cannot be made into an index.

    Commonly used acronyms– SAAR = seasonally adjusted annual rate– MoM = month-over-month change– QoQ = quarter-over-quarter change– YoY = Year-over-year change– K = thousands– M = millions.

    Investing in the bond market is subject to certain risks, including market, interest rate, issuer and inflation risk– investments may be worth more or less than the original cost when redeemed. The value of most bond strategies and fixed income securities are impacted by changes in interest rates. Bonds and bond strategies with longer durations tend to be more sensitive and more volatile than securities with shorter durations– bond prices generally fall as interest rates rise, and values rise when interest rates decline. 

    S&P 500 Index is comprised of 500 widely-held securities considered to be representative of the stock market in general.

    S&P 500 Information Technology Index –a capitalization-weighted index that is composed of those companies included in the S&P 500 that are classified as members of the information technology sector based on GICS® classification.

    The CBOE Volatility Index® (VIX®) is a measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices.

    MSCI ACWI Index (MSCI All Country World) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI ACWI consists of 45 country indices comprising 24 developed and 21 emerging market country indices.

    MSCI EAFE Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada.

    MSCI EM Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.

    Bloomberg Global Aggregate Index is an index of investment grade debt including treasury, government-related, corporate and securitized debt, from 24 local currency benchmarks.

    Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq.

    The ICE BofA U.S. High Yield Index tracks the performance of below investment grade, but not in default, U.S. dollar denominated corporate bonds publicly issued in the U.S. domestic market, and includes issues with a credit rating of BBB or below, as rated by Moody’s and S&P.

    The Bloomberg Municipal Bond Blend 1-15 Year (1-17 Yr) is an index of municipal bonds with a minimum credit rating of at least Baa, issued as part of a deal of at least $50 million, that have a maturity value of at least $5 million and a maturity range of 12 to 17 years.

    The Bloomberg U.S. Corporate High Yield measures the USD-denominated high yield fixed-rate corporate bond market. Bonds are classified as high yield if they are rated below BBB by Moody’s and S&P.

    The Bloomberg Dollar Spot Index tracks a basket of 10 leading global currencies versus the U.S. dollar.

    The ICE BofA Global Government ex U.S. Index tracks the performance of publicly issued investment grade sovereign debt denominated in the issuer's own domestic currency excluding all securities denominated in U.S. dollars.

    The Bloomberg Commodity Index is a composition of futures contracts on physical commodities in five sectors including energy, agriculture, industrial metals, precious metals and livestock.

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