DFG Navigator Archives | 2024

Your Capital Markets Snapshot: Stocks Swung Back and Forth

It was a wild week as stocks swung back and forth beginning with an early-week rally after the attempted shooting of Donald Trump followed by weakness in tech stocks after the week ended with a global IT outage. For a second week in a row, we saw small cap stocks outperform their large cap peers and value outperform growth. Expectations remain high for an upcoming rate cut by the Federal Reserve in September as economic data showed signs of consumer strength, with retail sales numbers surprised to the upside, and slack in the labor market, as initial and continuing jobless claims surprised to the upside.

Your Capital Markets Snapshot: Large Cap Equities Delivered Impressive Performance

Despite a short week and economic data showing signs of a slowing economy, large cap equities delivered impressiveperformance, primarily fueled by the tech sector. Both the S&P 500 and Nasdaq closed the week at record highs as did the tech giants AAPL, AMZN, GOOGL, META, and MSFT. While monthly job growth came in above estimates, the prior two months were revised down. The unemployment rate ticked up to 4.1%, its highest level since November 2021, with reported job openings exceeding expectations. Based on ISM data, the Manufacturing sector reported a contraction for the third consecutive month (and 19 of the last 20), while the Services/non-Manufacturing sector fell significantly from the prior month to its lowest level in 4 years and reported a contraction. Given signs of a softening economy, expectations for an upcoming Fed rate cut in September increased.

Your Capital Markets Snapshot: Equity Markets Experienced Mixed Week

The equity markets had a mixed week to close out the first half of the year; however, on a year-to-date basis, all three major equity indices have shown impressive gains. Economic news last week showed inflation continues to trend lower as the core Personal Consumption Expenditure (PCE) Index for May was reported in line with expectations with an annual gain at 2.6%.

Your Capital Markets Snapshot: Equity Markets Constrained Last Week

Mixed economic data kept the equity markets constrained last week moving into the final days of the second quarter. May retail sales figure came in below expectations with a gain of only 0.1%, while April’s retail sales figure was revised to a decline of 0.2%.

Your Capital Markets Snapshot: Key Inflation Data Below Expectations Last Week

Key inflation data came in below expectations last week, helping the Federal Reserve move towards their goal of lower inflation. The headline Consumer Price Indec (CPI) came in at an annualized rate of 3.3%, below economists’ estimates of 3.4%.

Your Capital Markets Snapshot: Mixed Picture of the Jobs Market Last Week

There was a mixed picture of the jobs market last week despite the upside surprise to the May Non- Farm Payroll report.

Your Capital Markets Snapshot: Three Indices Managed to Post Positive Returns

In a light week of economic releases, corporate earnings were the driver behind the market’s negative performance this week, but all three indices managed to post positive returns for the month.

Your Capital Markets Snapshot: Markets Were Mixed Last Week

The markets were mixed last week led by a surge in the technology sector due in part to a positive earnings report from chip maker Nvidia.

Your Capital Markets Snapshot: Equity Markets Saw Record Highs This Week

With a light week for economic releases, concerns over the U.S. job market were in focus as weekly jobless claims rose to their highest level since August with a gain of 231,000.

Your Capital Markets Snapshot: Concerns Over the U.S. Job Market

With a light week for economic releases, concerns over the U.S. job market were in focus as weekly jobless claims rose to their highest level since August with a gain of 231,000.

Your Capital Markets Snapshot: Federal Reserve Kept the Fed Funds Rate Unchanged

Economic data this week did not move as the Federal Reserve may have wished.

Your Capital Markets Snapshot: Preliminary First Quarter GDP Estimates Below Expectations

Economic data this week did not move as the Federal Reserve may have wished.

Your Capital Markets Snapshot: Equity Markets Down for the Third Week

The equity markets were down for the third week in a row on continued tensions in the Middle East and hawkish comments from Federal Reserve Chairman Jay Powell.

Your Capital Markets Snapshot: Pressure on the Markets this Week

Tensions in the Middle East and a stronger than expected Consumer Price Index (CPI) report put pressure on the markets this week.

Your Capital Markets Snapshot: Positive News on the Jobs Front

The second quarter started off with positive news on the jobs front as the March non-farm payroll report came in with a gain of 303,000 jobs which was well above expectations of 205,000.

Your Capital Markets Snapshot: A Bright Picture of the U.S. Economy

Data in the last week of the quarter painted a bright picture of the U.S. economy. The Federal Reserve’s preferred inflation metric, the Personal Consumption Expenditure (PCE) Index, came in as expected for February with an increase of 2.5% for the year.

Your Capital Markets Snapshot: The Federal Reserve’s “Dot-Plot” Back in the News

The Federal Reserve’s “dot-plot” was back in the news this week following the March FOMC meeting. While no rate cuts were announced at this meeting, the new pattern of expected Fed moves implies three cuts at some point in 2024.

Your Capital Markets Snapshot: Slight Pickup in Inflationary Pressures

Economic data showed a slight pickup in inflationary pressures which may keep the Fed on pause at their FOMC meeting this week. Both the Consumer Price Index (CPI) and the Producer Price Index (PPI) came in slightly higher than expected last week.

Your Capital Markets Snapshot: Equity Markets Close with a Loss

The equity markets could not hold on to their recent rally and closed with a loss this week. Friday’s better than expected job report pushed two of the major indices into record territory but then profit-taking brought stocks lower to end the week.

Your Capital Markets Snapshot: Equity Markets Reach Record Levels

Despite some mixed economic news this week, the equity markets continued to reach record levels. The Nasdaq and S&P 500 both closed at all-time highs on Friday, after ending February with their best monthly return in nine years.

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