Market Recap (10/22/23)
Market Recap of the week of October 16, 2023 - October 20, 2023
Source: Apple Stocks Application
Overall Market Trends:
This past week, all markets were red. The Dow Jones marking its worst week in a month dropped 782 points (2.31%), the tech-heavy NASDAQ marketed its second consecutive week of losses, sinking 516 points (3.82%), the S&P 500 saw its first weekly loss in 3 weeks, dropping 134 points (3.08%), and the New York Stock Exchange (NYSE) decreased 388 points (2.51%). The overall market decreased primarily due to worries and realities about the rising war in the Middle East and increased Treasury Yields.
Federal Reserve Chair Jerome Powell’s remarks on Thursday sent investors into a selling frenzy as they were worried that his comments suggested that another rate hike is coming and we may not see decreased rates until late next year. Powell was heard mentioning that he was unsatisfied with the recent economic data which could indicate that we won’t be seeing decreased rates for a while. Moreover, the Cleveland Fed President said that she was in favor of one more interest rate jump which would leave interest rates at 5.5%-5.75%, further supporting investors’ speculations of a rate increase.
Additionally, treasury yields continued their spike, nearly reaching the 5% mark. When treasury yields rise, stock market prices drop since the stock market has safer competition. The 10-year treasury yield has hit its highest point since 2007.
Two weeks into the Israel-Hamas war, investors began to speculate that Israel would launch a ground invasion as towns near the Gaza border and Lebanon border were ordered to evacuate. As tensions rise, investors worry that tensions in the Middle East, the largest supplier of oil, would jeopardize oil supplies, further increasing the already heightened oil prices. Higher oil prices point towards higher inflationary pressures which would therefore call for higher interest rates and tank stock prices.
Past Earning Reports:
Looking Towards The Future
As mentioned last week, if tensions continue to increase in the Middle East and the Israel-Hamas war becomes a wider issue, the stock market could take a dive as gold prices, energy prices, and oil prices would shoot up which would therefore raise questions with regards to inflation and therefore rate hikes.
Future Earning Reports:
