A look back
- Equities rallied on Friday to push the S&P 500 to a modest 0.3% gain for the week. Value stocks were in favor while more growth-oriented sectors lagged; international markets outpaced the U.S.
- Yields ended the week lower, particularly at the shorter end of the curve. Much of the move lower came on Friday, when the two-year U.S. Treasury yield dropped 0.10% to 3.69%. The 10-year yield closed at 4.25%.
- Federal Reserve (Fed) Chairman Jerome Powell’s Friday speech at Jackson Hole was the catalyst for stocks’ surge and yields’ decline, as investors interpreted his comments as dovish.
A look ahead
- Economic data will be in focus, highlighted by Core Personal Consumption Expenditures (PCE), the Fed’s preferred inflation gauge. Investors will also keep an eye on second quarter GDP and housing data from the month of July.
- Though earnings season is largely in the rearview, off-quarter earnings reports will garner attention, led by Nvidia and several other technology companies.
- Economic releases: New Home Sales, GDP, Pending Home Sales, Core PCE, Personal Income, U. of Michigan Consumer Sentiment.
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