Market Recap (4/7/24)
Market Recap of the Week of April 1, 2024 - April 5, 2024
Source: Apple Stocks Application
Overall Market Trends:
Last week, the market dropped, rebounded, and then dropped again resulting in all four major indices finishing the week negative. The New York Stock Exchange Composite fell 184 points (-0.84%), the S&P 500 dropped 66 points (-1.07%), the NASDAQ Composite declined 160 points (-1.16%), and the Dow Jones posted weekly losses of 892 points (-2.24%). This week’s price change was primarily dictated by concerns regarding rate cuts, rising yields, surging oil prices, and profit-taking.
The market finished lower on Monday as investors’ concerns regarding the timing of rate cuts have begun to increase - there is currently a 58% chance of a June rate cut, down from 64% last week. Additionally, ISM’s manufacturing PMI for March was greater-than-expected, rising to 50.3, which was up from 47.8 in February. This caused treasury yields to increase on Monday which in turn caused the market to drop. When treasury bond yields increase, the stock market generally decreases because a rise in yield prices indicates that the stock market has more competition. Rising yields makes riskier stock investments less attractive as investors can make more money off yields than stocks.
This narrative stayed for nearly the entire week. Stocks continued to drop on Tuesday, Wednesday, and Thursday, logging 4 straight losses to start the new quarter. On top of these concerns, oil prices continue to surge, reaching 5-month highs.
While markets rebounded on Friday, it was not enough to overcome the drop from the prior four trading sessions, resulting in the Dow Jones worst week of 2024.
Past Earnings Report:
Looking Towards the Future
Upcoming Important Economic Events:
Monday: Chicago Fed President Austan Goolsbee radio interview
Tuesday: NFIB optimism index;
Wednesday: Consumer Price Index (CPI); Core CPI; Minutes of Fed's March FOMC meeting; Various Fed Speakers (See Below)
Fed Gov. Michelle Bowman speaks
Chicago Fed President Austan Goolsbee speaks
Thursday: Initial Jobless Claims; Producer Price Index (PPI); Core PPI; Various Fed Speakers (See Below)
Fed Gov. Michelle Bowman speaks
Boston Fed President Susan Collins speaks
Chicago Fed President Austan Goolsbee speaks
Atlanta Fed President Raphael Bostic speaks
Friday: Import Price Index; Consumer Sentiment
Atlanta Fed President Raphael Bostic speaks
San Francisco Fed President Mary Daly speaks
Future Earnings Reports: