Market Recap (7/7/24)
Market Recap of the Week of Jul 1, 2024 - Jul 5, 2024
Source: Apple Stocks Application
Overall Market Trends:
Last week, the stock market continuously trended up as the week progressed with 3/4 indices finishing the week positive. The sole loser was the New York Stock Exchange Composite which fell 20 points (-0.11%). On the other hand, the S&P 500 climbed 02 points (+1.68%), the Dow Jones rose 28 points (+0.07%), and the NASDAQ Composite posted weekly gains of 603 points (+3.39%).
Markets rose on Tuesday as Federal Reserve Chair Jerome Powell commented that inflation was progressing towards their 2% goal. Powell went further by reiterating that the Fed wants to feel more comfortable and confident that inflation is moving down before beginning rate cuts. Additionally, Tesla rose over 10% on Tuesday following stronger-than-expected deliveries for the second quarter which also boosted indices.
Markets closed early on Wednesday and stayed closed on Thursday in observance of Independence Day (July 4th). While economic data early Wednesday morning showed a softening of the economy and lower private payroll growth, bond yields dropped causing stocks to rise. When treasury bond yields decrease, the stock market generally increases because a drop in yield prices indicates that the stock market has less competition. Dropping yields makes riskier stock investments more attractive as investors can make more money off of stocks than yields. Tesla continued to rise on Wednesday as it jumped another 6.5%.
A positive labor data report on Friday increased hopes of a September rate cut causing markets to flourish. Future’s has a September rate cut at a 74% chance, up from 64% last week.
Past Earnings Report:
Looking Towards the Future
Upcoming Important Economic Events:
Monday: S&P final U.S. manufacturing PMI
Tuesday: NFIB optimism index; Fed Chairman Powell testimony to Senate
Wednesday: Wholesale inventories; Fed Chairman Powell testimony to Senate
Thursday: Initial jobless claims; Consumer Price Index (CPI); Core CPI
Friday: Producer Price Index (PPI); Core PPI
Future Earnings Reports: