A look back
- Stocks were mixed while tech continued to reassert its leadership. The S&P 500 fell 0.3% on the week while the Nasdaq rose 0.7% for its third weekly gain in a row and reached a record intraday high on Friday. International markets and emerging markets were down 1.5% and 1.2%, respectively.
- Long-term U.S. Treasury yields hit new highs, as the 10-year reached 5.35% on Thursday, its highest level since 2002. The yield curve steepened as well with the 2-year yield falling to 4.83%.
- Hiring slowed last month, with nonfarm payrolls growing by only 29k. The unemployment rate ticked up to 4.2%. Markets now only see about a 23% chance of a Federal Reserve rate hike in October.
A look ahead
- This week is lighter on economic data. The main event is Wednesday’s release of the Federal Open Markets Committee (FOMC) minutes from the Federal Reserve’s September meeting. Investors will look for clues whether more rate hikes are coming this year.
- Monday’s ISM Services PMI will give clues on the strength of the services side of the economy and Friday’s University of Michigan sentiment reading will show whether consumer confidence remains near recent lows.
- Economic releases: Services PMI, ISM Services Index, FOMC meeting minutes, Wholesale Inventories, University of Michigan Consumer Sentiment.
Our full report is reserved for clients only. Let’s work together.
A caring advisor can help you uncover opportunities and take on challenges—and provide greater confidence, clarity, simplicity, and direction.