Market Recap (2/11/24)
Market Recap of the Week of February 5, 2024 - February 9, 2024
Source: Apple Stocks Application
Overall Market Trends:
This past week, the market trended upward for the fourth consecutive week. The New York Stock Exchange, S&P 500, and Nasdaq Composite all finished every day last week in the green. The NYSE finished the week up 268 points (+1.57%), the S&P 500 rose 76 points (+1.53%), the Nasdaq Composite posted weekly gains of 389 points (+2.49%), and the Dow Jones Industrial Average increased 158 points (+0.41%). These results were dictated primarily by new economic data, comments by the Fed Chairman, and earnings.
On Monday, the Institute for Supply Management (ISM) index data for January showed that the index had risen 3% in January - from 50.5% to 53.5% - 1.5% more than economists had expected. Once the Fed sees signs that the economy is beginning to weaken, it will take action to counteract it. However, this data suggests the opposite, supporting that the Fed will keep rates steady at the March meeting. Chances of the Fed cutting rates at the March meeting have already decreased as the Fed Chair Jerome Powell indicated at last week's meeting and on a 60 Minutes episode over the weekend that a rate cut next meeting is unlikely. Both of these factored into the poor outcome on Monday for the majority of the stock market including the Dow Jones Industrial Average.
Markets rose on Tuesday and Wednesday as investors made peace with the fact that they will have to wait until the May meeting for potential rate cuts. Instead of focusing on rate cuts, they have shifted their focal points toward corporate earnings. This persisted throughout the remainder of the week.
Past Earnings Report:
Looking Towards the Future
Future Earnings Reports: