Market Recap (3/10/24)
Market Recap of the Week of March 4, 2024 - March 8, 2024
Source: Apple Stocks Application
Overall Market Trends:
Last week, three out of the four major indices finished the week negative, ending the ongoing streak of end-of-week-all-time-highs. The sole positive index, the NYSE Composite, rose 145 points (+0.82%). However, on the other side of things, the S&P 500 dropped 6 points (-0.12%), the NASDAQ Composite fell 158 points (-0.97%), and the Dow Jones Industrial average decreased by 245 points (-0.63%) on the week. The market this week was largely influenced by new economic data and Fed Chair Jerome Powell’s comments during his Congressional Testimony.
On Tuesday, the market took a more cautious approach as investors prepared for Fed Chair Jerome Powell to take the stand in the House of Representatives on Wednesday and the Senate on Thursday. However, this was not the only reason for Tuesday's market decline. The PMI (Purchasing Manager’s Index) fell greater than expected for the month of February.
On Wednesday, prior to his statements to Congress, Powell said that inflation had significantly eased since its 2022 highs but that that was not enough for policymakers to feel comfortable enough to begin rate cuts. He later stated during his testimony that he expects the Fed to cut interest rates and that the U.S. economy is far from a recession. However, he avoided setting a specific timetable for the Fed to employ these rate cuts. This news helped boost market morale and this was seen in the market as all four major indices rose on Wednesday. New economic data - increased private payrolls and decreased job openings - also contributed to the market success on Wednesday and boosted hopes for rate cuts.
Powell continued to express that the Fed was near rate cuts on Thursday during his testimony to the U.S. Senate. These remarks, along with more economic data, continued to boost market and index prices with the S&P 500 hitting a new all-time high.
These gains were counteracted on Friday as many of the large-cap chip companies all fell over 5%. Additionally, new economic data was released on Friday that showed more new jobs than expected as well as the unemployment rate rising which also contributed to the decline during Friday’s trading session.
Past Earnings Report:
Looking Towards the Future
Upcoming Important Economic Events:
Tuesday: Consumer Price Index (CPI)
Thursday: Producer Price Index (PPI); Initial Jobless Claims
Friday: Consumer Sentiment; Import Price Index
Future Earnings Reports: