Market Recap (1/14/24)
Market Recap of the Week of January 8, 2024 - January 12, 2024
Source: Apple Stocks Application
Overall Market Trends:
Over the past week, all major indexes marked weekly gains. The New York Stock Exchange rose 62 points (0.37%), the S&P 500 increased 76 points (1.62%), the Dow Jones posted weekly gains of 241 points (0.65%), and the NASDAQ Composite rose 384 points (2.63%). Per usual, this week’s price change was primarily dictated by data pertaining to inflation and treasury yield prices.
According to a New York Fed survey, U.S. one-year inflation estimates were the lowest since January 2021. This news, in turn, pushed 10-year treasury yields note below 4%. When treasury bond yields decrease, the stock market generally increases because a drop in yield prices indicates that the stock market has less competition. Dropping yields makes riskier stock investments more attractive as investors can make more money off stocks than yields.
After the surge on Monday, the stock market trended down on Tuesday. This result was highly related to the Federal Reserve and interest rates. The chances of an interest rate cut at the March meeting are down from 70% last week to 59% on Tuesday. Additionally, according to the Governor of the Federal Reserve, Michelle Bowman, inflation can decline without additional rate increases. Still, the economy is not at a point where rate cuts are necessary.
The release of the Consumer-Price Index (CPI) on Thursday, an essential measure for inflation, contributed to the drop in prices Thursday morning. In December, the CPI increased more than expected indicating that it is too early for investors to see rate cuts. The increase was mainly due to the increase in prices for shelter. However, this data was mostly offset by the falling treasury yield prices.
On Friday, market prices varied throughout the day, ultimately finishing around even. This was due to many major banks having mixed earnings reports as well as the conflicting inflation data.
Past Earnings Report:
Looking Towards the Future
Earnings Reports next week are filled with Major Banks, Financial Services, Brokerage Firms, and Investment Banking Firms.
Future Earnings Reports:
