Market Recap (8/25/24)
Market Recap of the Week of Aug 19, 2024 - Aug 23, 2024
Source: Apple Stocks Application
Overall Market Trends:
Last week, the stock market continued its rebound for the second straight week with all four indices finishing the week positive. The New York Stock Exchange Composite (NYSE) rose 269 points (+1.43%), the S&P 500 rose 72 points (+1.29%), the NASDAQ Composite rose 238 points (+1.35%), and the Dow Jones Industrial Average rose 406 points (+1.00%).
Sentiment from the previous week continued into Monday’s trading session, marking the eighth straight winning day for indices.
Stocks finished slightly negative on Tuesday, ending the market’s eight-day winning streak, as investors await the minutes from the Fed’s July policy meeting on Wednesday as well as the Jackson Hole Economic Symposium set to take place on Friday.
On Wednesday, the Federal Reserve released the Minutes of their July policy meeting. The minutes featured remarks from Fed officials suggesting that a rate cut in September is more than likely and will be necessary if all upcoming economic reports come in as expected. Currently, futures have a September rate cut priced in at a 100% probability. This caused stocks to rise during Wednesday’s trading session. Additionally, Target rose 11% on Wednesday due to stronger-than-expected earnings and Macy’s fell about 13% due to weaker-than-expected guidance regarding full-year sales.
Stocks fell on Thursday as treasury yields rose. When treasury bond yields rise, the stock market generally decreases because it indicates that the stock market has more competition. If an investor can make more money in a safe government bond, then they are better off investing in those bonds rather than the risky and volatile stock market.
The market soared on Friday after Fed Chairman Jerome Powell’s remarks at the Jackson Hole Economic Symposium. At the symposium, Powell signaled that “the direction is clear” and that rate cuts are coming. However, he refused to give an exact timeline and stated that “the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.” Powell expressed confidence that the Fed will reach its 2% inflation goal and reassured investors that they will do everything to make sure they achieve that goal while maintaining a strong labor market.
Past Earnings Report:
Looking Towards the Future
Upcoming Important Economic Events:
Tuesday: S&P Case-Shiller home price index (20 cities); Consumer confidence
Thursday: Initial jobless claims; GDP (2nd revision)
Friday: Personal Consumption Expenditures (PCE); Core PCE; Chicago Business Barometer (PMI); Consumer sentiment (final)
Future Earnings Reports: