Market Recap (7/14/24)
Market Recap of the Week of Jul 8, 2024 - Jul 12, 2024
Source: Apple Stocks Application
Overall Market Trends:
Last week, all four major indices trended up. The two technology-driven indices, the S&P 500 and the NASDAQ Composite rose but took a large fall on Thursday. However, they both finished the week positive with the S&P 500 increasing 37 points (+0.66%), and the NASDAQ Composite rising 20 points (+0.11%). The New York Stock Exchange Composite (NYSE) and the Dow Jones Industrial Average consistently trended up for the entire week. The NYSE Composite rose 338 points (+1.86%), and the Dow Jones finished the week up 404 points (+1.02%). These results were largely impacted by remarks from Jerome Powell as well as new economic data.
Markets stayed relatively steady on Monday as invested awaited remarks from Fed Chairman Jerome Powell on Tuesday.
Federal Reserve Chairman Jerome Powell had his semi-annual meeting with the Senate on Tuesday. In this testimony, he made clear the dangers of keeping rates high for too long, suggesting the Fed is beginning to shift its stance, and rate cuts may be in the near future. This pushed markets higher.
This sentiment continued into Wednesday’s session as Powell continued his testimony to the Senate and chip stocks pulled markets higher.
The Consumer Price Index (CPI) decreased by 0.1%, far lower than the 0.1% increase expected. This caused treasury yields to fall, in turn causing stocks to rise. However, investors pulled out of big-tech stocks like Meta and Nvidia and shifted to smaller companies whose business has been greatly impacted by the lower rates. The small-cap index Russel 2000 rose 3.6% on Thursday. Additionally, the Fed Futures foresaw a 93% chance of interest rate cuts in September.
Sentiment from Thursday’s trading session continued into Friday’s session as investors continued to rotate from big-tech companies to smaller companies, especially those on the Dow Jones. The Producer Price Index (PPI) came in a little hotter than expected but investors chose to focus on the more important Consumer Price Index that came in on Thursday.
Past Earnings Report:
Looking Towards the Future
Upcoming Important Economic Events:
Monday: Empire State Manufacturing survey; Fed Chairman Jerome Powell Speaks
Wednesday: Fed Beige Book
Thursday: Philadelphia Fed manufacturing survey
Future Earnings Reports: