Weekly Review (September 18-22)
STOCKS
Stocks have been mostly under pressure these days, with US equities falling on Thursday to mark the third straight day of losses. The S&P index, which saw the worst session since March, gave up 1.64%, the Dow Jones and the Nasdaq Composite lost 1.08% and 1.82%, respectively. As a result, the Nasdaq is now poised to fall more than 3% for the week, while the S&P 500 is on track to end the week down more than 2%. Investors fear that federal lawmakers won’t pass a bill to avert a government shutdown. Also, the sentiment is hurt by Fed’s hawkishness and rising Treasury yields. The US central bank flagged a further rise in US interest rates this year, also signaling borrowing costs will stay higher for longer. In Asia, the overall tone has improved somehow after the Bank of Japan BOJ stuck to an ultra-easy monetary policy and made no changes to its outlook.
22.09.2023
1114
Weekly Review (September 4-8)
STOCKS
Global equity markets were mostly lower this week as worries about the Fed’s interest rate policy path reemerged after strong economic data. Weekly jobless claims came in fewer than expected, while second-quarter labor costs rose more than anticipated. The data added to fears that a resilient economy may make the central bank deliver another rate hike this year. Earlier in the week, the data showed that the economic activity in the service sector continued to expand last month, for the eighth consecutive month, with the ISM Services PMI rising from 52.7 to 54.5, exceeding the market expectation of 52.5. US stocks finished mostly in red on Thursday as Fed-related worries persisted. The tech-heavy Nasdaq gave up 0.89% to fall for a fourth session in a row. The S&P 500 slipped 0.32%, while the Dow Jones bucked the trend to add 0.17%. In Asia, equities declined after Japan reported its economy grew less than earlier estimated in the second quarter.
08.09.2023
1114
Weekly Review (August 28 - September 1)
STOCKS
Equities traded in a mixed manner during the week. Earlier in the week, US stocks rallied as Treasury yields tumbled after consumer sentiment data came in lower than expected. Also, in a sign of a cooling US economy, another survey showed a decline in job openings in July. Weak data pushed up hopes for a less hawkish Federal Reserve. On Thursday, however, stocks were mixed-to-lower as risk demand continued to abate. The Nasdaq Composite added 0.11% to register a fifth consecutive winning day. The Dow Jones slipped 0.48% and the S&P 500 shed 0.16%. For the month, the Nasdaq gave up 2.17%, the Dow dropped 2.36% and the S&P 500 lost 1.77%. On the data front, the core PCE index, a closely watched inflation indicator by the Fed, increased 0.2% month over month in July and 4.2% year over year, matching expectations. Mow, investor focus shifts to the US jobs report that will set fresh direction for financial markets.
01.09.2023
1082
Weekly Review (August 21-25)
STOCKS
Global equities were mostly higher at the start of the week, with the S&P 500 index snapping a four-day losing streak due to a rise in tech stocks, which advanced despite a climb in Treasury yields that reached their highest level since November 2007. In individual stocks, Nvidia shares jumped after the report showed that the company beat Wall Street's lofty expectations, with profits exploding thanks to the chipmakers’ artificial intelligence business. However, the Nvidia-led rally fizzled quickly, and Wall Street stocks fell sharply on Thursday as investors braced for a key speech from Federal Reserve Chairman Jerome Powell. The Dow Jones closed 1.08% lower, the S&P 500 shed 1.35%, and the tech-heavy Nasdaq Composite gave up 1.87%. The Fed governor is expected to shed more light on the central bank’s plans for interest rates. A hawkish tone could pressure equities further ahead of the weekend.
28.08.2023
1114
Weekly Review (August 14-18)
STOCKS
Equities were mostly downbeat during the week, with Wall Street stocks sliding for a third session on Thursday as investors continued to digest the minutes of the Federal Reserve’s July meeting, which contained a hawkish bias, pointing to potentially higher rates. In particular, the central bank officials said additional tightening may be necessary to bring down inflation. Overnight, the Dow Jones dropped 0.84%, the S&P 500 dipped 0.77%, and the Nasdaq Composite declined 1.17%. Also, a cautious tone in stock markets is due to rising Treasury yields. The 10-year US Treasury yield reached its highest point since October 2022 on Thursday. Persisting fears over China's sluggish economic recovery added to a more downbeat tone among investors. In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan was under pressure to give up 8% so far this month and set for its worst monthly performance in nearly a year.
18.08.2023
1138
Weekly Review (August 7-11)
STOCKS
Global stocks were mixed during the week, with US equities finishing marginally higher on Thursday. Earlier, markets were pressured by a Moody’s downgrade of several regional banks. Investors were concerned the signal could spell more trouble for markets ahead. Meanwhile, fresh data showed that the US headline CPI gained 0.2% last month, raising the inflation indicator to 3.2%, which is lower than the expected 3.3% figure. The release strengthened bets the Fed will pause interest rate hikes. As a reminder, the central bank delivered another 25-bps hike last month. In Asia, stocks were pressured by the news that the US government announced new restrictions on technology investments in China. Ahead of the weekend, Asian stock markets declined after US inflation data fueled unease about the outlook for the biggest global economy.
11.08.2023
1142
Weekly Review (July 31-August 4)
STOCKS
Global stock markets were mostly lower during the week as investors were spooked by the news that Fitch rating downgraded its US debt rating from the highest AAA rating to AA+. As such, stocks closed lower on Thursday as Wall Street’s rally kept cooling, with Treasury yields continuing to march higher, putting more pressure on equities. The benchmark 10-year Treasury yield was trading around 4.18%, near its highest level since November 2022. The S&P 500 slipped 0.3%, its third straight loss. The Dow fell 0.2%, and the Nasdaq composite lost 0.1%. Fresh data indicated a still-solid job market and still-growing services industries. In Asia, the Shanghai Composite Index rose slightly after China’s central bank governor said real estate developers would be allowed to raise more money by selling bonds, further easing debt controls imposed three years ago.
04.08.2023
1172
Weekly Review (July 24-28)
STOCKS
Global stocks rose modestly earlier in the week in anticipation of the Fed decision and details of China's economic stimulus package. After some modest gains in the aftermath of the meeting, US stocks slipped on Thursday, with the Dow running out of steam after thirteen sessions of gains in a row. The index fell 0.67% amid profit-taking following a prolonged winning streak. The S&P 500 gave up 0.64% after a brief rally above the 4,600 level for the first time in more than a year. The Nasdaq Composite closed 0.55% lower amid a slide in Apple and Microsoft shares. On the data front, the GDP reading showed a rise of 2.4% in the second quarter, better than the 2% increase expected. Meanwhile, the personal consumption expenditures price index rose 2.6% in the second quarter, which is lower than the 4.1% rise in the prior quarter.
28.07.2023
1142
Weekly Review (July 17-21)
STOCKS
After a mixed start to the week, global equities were mostly lower these days, with tech stocks leading losses amid unimpressive corporate earnings results. In individual stocks, Netflix stocks plunged after the company posted its second-quarter earnings report. The streaming giant posted $8.19 billion in revenue, falling short of the $8.3 billion anticipated. Shares of Tesla also fell as Elon Musk said he expects a slowdown in vehicle production in the third quarter. On Thursday, Wall Street US stocks finished mixed, digesting fresh corporate earnings. The S&P 500 shed 0.68% and the Nasdaq Composite fell 2.05% while the Dow Jones Industrial Average jumped for a ninth consecutive day as investors cheered better-than-expected earnings results from Johnson & Johnson. It was the Dow’s best daily winning streak since 2017. The index climbed 0.47% during the session, while shares of Johnson & Johnson rose 6% after the company hiked its full-year guidance along with posting strong quarterly results.
21.07.2023
1153