Market Recap (9/24/23)
Market Recap of the week of September 18, 2023 - September 22, 2023
Source: Apple Stocks Application
Overall Market Trends:
Over the course of this past week, the market took a tumble. The New York Stock Exchange dropped 390 points (2.44%), the S&P 500 ended the week down 130 points (2.93%), the NASDAQ fell 497 points (3.63%), and the Dow Jones Industrial Average slid 695 points (2.00%). These numbers were the worst the market has faced since March 2023. However, it is important to note that these indices were more or less stable until Wednesday afternoon.
As mentioned last week, the Federal Reserve held a meeting to discuss policy on Wednesday. As anticipated, the Fed decided to hold off on increasing interest rates. Although this may sound like good news, the market still significantly dropped and continued its dive throughout the remainder of the week. This is due to the fact that the Federal Reserve dot-plot pointed towards one more increase in interest rates for this year. Furthermore, the Fed minimized the number of projected decreases in rates next year from four to just two. These had adverse reactions on the market from Wednesday afternoon to the market’s close on Friday.
Federal Reserve Dot Plot:
Source: Bloomberg
Interest Rates Graph:
Market News:
It is important to keep an eye on the growing United Auto Workers Strike (UAW) which has expanded to 38 new locations across 20 additional states. A union is essentially a group of workers who unite and use their collective power to have a say in their workplace. These workers aim to maintain or enhance their employment conditions, including wages, benefits, safety standards, and bargaining power. They also strive to establish fair regulations for promotions and termination, as well as ensure that working conditions are satisfactory. The United Auto Workers Union was created to improve and safeguard the wages, healthcare, pensions, work hours, and work conditions of all UAW members. The current UAW strike is focused on increasing wages and benefits, such as pensions.
Predicting when the current United Auto Workers Strike will end is a challenge because the UAW is taking a unique approach compared to past strikes. In 2019, the UAW held a strike where all workers refused to work, and it lasted for 40 days. Similarly, there was a strike in the 1940s under the same circumstances, and it lasted for 113 days. However, the current UAW strike in 2023 is different as only selected factories are not showing up to work. Despite this, the targeted companies - Ford, General Motors, and Stellantis - have a significant amount of cash on hand to resist the UAW's demands. Furthermore, the union's strike fund only has $825 million, which would be depleted in three months if all 146,000 workers went on strike simultaneously. Considering these factors, it's impossible to predict when the strike will end.
Earning Reports from the Past Week:
Looking Towards the Future
Earnings Reports to Look Foward to This Upcoming Week:
Earnings Reports releasing this week include some big names: Nike, Costco, Accenture, and Micron Technology.
