Market Recap (10/1/23)
Market Recap of the week of September 25, 2023 - September 29, 2023
Source: Apple Stocks Application
Overall Market Trends:
This past week, the stock market constantly fluctuated, decreasing in the first half of the week and partially rebounding towards the end of the week. The Dow Jones fell 362 points (1.07%), the New York Stock Exchange ended the week down 103 points (0.67%), and the S&P 500 lost 16 points (0.37%) due to a combination of new bond issues, increased treasury yields, confidence in the U.S. labor market and economy, and a looming government shutdown. Despite these circumstances, the tech-heavy NASDAQ still rose 76 points (0.58%) last week.
When treasury bond yields rise, the stock market generally decreases because it indicates that the stock market has more competition. If an investor can make more money in a safe government bond, then they are better off investing in those bonds rather than the risky and volatile stock market. Yields are currently rising, in addition to a new wave of bond issues, because the U.S. economy, particularly the job market, is showing continued strength. This is also why the Fed is holding interest rates steady for longer than investors had expected. Therefore the market has been trending down over the past few weeks. Additionally, a potential government shutdown has also been pushing the market down.
Update on UAW Strike:
The United Auto Workers strike, now entering its third week, has shifted its focus to a more pragmatic issue: what will happen to workers in an electric future. As the automobile industry shifts towards electric vehicles (EVs), the UAW wants to guarantee that workers who currently construct transmissions, engines, and other parts that will become outdated will still have jobs in an EV society. They also want to see the framework for the battery plants that would power the EVs. The strike originally started geared towards increased pay and benefits, but they are at a standstill due to the UAW now pushing for information on the battery plants. The UAW submitted an official offer to Ford on Monday, September 25, but has not heard back. The strike continues to grow as two additional factories - one Ford factory and one GM factory - were added to the list of walkouts, while a strike in a Stellantis factory was recalled as the UAW feels negotiations are progressing.
Ford and GM have expressed discomfort with the situation at hand and desire to find a deal that benefits them and only them - specifically not Tesla, a known rival. Each company is approaching negotiations separately. Since the start of the strike, Ford stock has decreased by 2.24% and GM stock has decreased by 3.99%. UAW workers are at no disadvantage from these walkouts earning $500 a week as opposed to the $14.74 an hour ($600 for a 40-hour week) they would normally be making.
Earning Reports from the Past Week:
Looking Towards the Future
Earnings Reports to Look Foward to This Upcoming Week:
