Your Capital Markets Snapshot: US Equity Markets Finished the Week Mixed

Courtesy of Allen Davis, CFP®

US equity markets finished the week mixed, as rising oil prices and renewed concerns over the sustainability of AI capital spending drove a rotation out of technology and communication services stocks and into defensive sectors and government bonds. The S&P 500 fell 0.5% for the week, pressured by a sharp selloff in communication services shares after Meta Platforms announced plans to significantly increase capital spending, while the Dow Jones Industrial Average posted a modest gain as investors sought shelter in more defensive names. Treasury yields declined across the curve, as flight-to-safety demand outweighed lingering inflation concerns following the prior week’s hotter-than-expected September CPI report. WTI crude oil rose approximately 4.3% on escalating Middle East tensions, while gold fell 4.1% amid a broader cross-market selloff ahead of the October Fed meeting. On the economic front, the NAHB/Wells Fargo Housing Market Index fell to its lowest level since June 2012, as mortgage rates above 7%, labor shortages, and elevated supply costs continued to weigh on builder sentiment.