Treasury Yields Rise Following the Fed’s September Rate Cut
Stocks finished October lower as investors navigated Q3 earnings, the upcoming election, and uncertain Federal Reserve policy. The S&P 500 posted its first monthly loss since April, lowering its year-to-date return to.
Busy week for macro markets
U.S. equity indices ended the week with mixed performance, as rising interest rates and the
looming Presidential election registered a cautious tone with investors. The S&P500 index fell 1%,
while the Nasdaq Composite rose slightly to a fresh record closing high.
PHLX Semiconductor index plunges
U.S. equities fended off notable semiconductor weakness to finish the week positive, with small-caps outperforming due to financial sector strength. The Russell 2000 index rallied nearly 2%, while the S&P500 and Nasdaq Composite each gained less than 1%.
Earnings season kicks off!
U.S. equities started the week on the backfoot as Chinese indexes slumped after no additional stimulus details came from officials—but the broader indexes quietly rallied from Tuesday on, bringing the S&P500 to new all-time highs for the 44th and 45th time this year…
The Federal Reserve Cuts Interest Rates by -0.50%
The major development in 3Q24 was the Federal Reserve’s decision to cut interest rates by -0.50%, the first rate cut of this cycle. It came as the Fed shifted its focus, with unemployment rising to a 33-month high and inflation moving back to target.
Q4 Look Ahead [Equity Markets]
China’s central bank and politburo unveiled the biggest stimulus package since the pandemic, sending their country’s equity markets soaring and lending support to global stocks
The devil in the details
U.S. equities continued the prior week’s rally, reaching a new all-time high for both the S&P500 and the Dow Jones Industrial average. The Nasdaq-100 and Russell 2000 indices both posted solid performances as well, rising 1% and 2% respectively, but fell short of new all-time highs….
All eyes on Fed
U.S. equities rebounded from their worst week of 2024, rallying sharply after the latest inflation data reinforced the idea that consumer prices are trending toward the Federal Reserve’s 2% target….
U.S. equities stumbling into September
Last week, U.S. equities rose and interest rates fell after Federal Reserve Chair Powell stated, “the time has come for policy to adjust”, the most direct signal yet that the FOMC intends to start cutting rates soon….READ MORE
Federal Reserve Set to Begin Cutting Interest Rates in September
Stocks traded higher in August despite an early-month selloff. The S&P 500 dropped over -5% in the first week after a report showed unemployment rose to 4.3% in July…