Strong US Economy proves resilient in face of tightening financial conditions. In October, global stocks declined due to concerns about rising interest rates and the Israel-Hamas conflict, while the US economy remained strong. The US dollar strengthened for the third consecutive month, reaching its highest monthly close since November 2022. Gold continued to be a top choice for hedging against economic uncertainties, and Bitcoin experienced its best month since January 2023, with its price surpassing $35,000. Each month, the Syz investment team takes you through the last month in ten charts.

While the AI bubble seems to be deflating for the Magnificant 7, OpenAI's valuation is close to $90 billion! The shares of four of Wall Street's biggest banks are under pressure which is causing concern among investors and the market. Each week, the Syz investment team takes you through the last seven days in seven charts.

US equities indices finished lower for a 2nd straight week, as market sentiment was dented by mixed corporate earnings reports, geopolitical tensions and concerns about rising bond yields. It was a busy week for quarterly earnings reports, with nearly a third of the S&P 500 Index due to report, including Alphabet, Microsoft, Meta and Amazon. Although most metrics reported by the companies showed solid growth and exceeded consensus expectations, markets seemed to pounce on indications of rising expenses, which weighed on shares. On the macro side, US real GDP grew at an annualized pace of 4.9% in Q3, led by strong consumer spending. Meanwhile, the core personal consumption expenditures (PCE) price index provided mixed evidence on whether inflation is moderating.

Cash is king, as the yield on US Treasuries exceeds the earnings yield on the S&P 500. Gold hits $2000 and China increasingly shuns US bonds. Each week, the Syz investment team takes you through the last seven days in seven charts.

Geopolitical concerns, tough talk from Fed officials, and a rise in long-term bond yields to 16-year highs appeared to weigh on sentiment and drove the S&P 500 Index to its biggest weekly decline in a month. The Nasdaq fared worst among the major benchmarks and nearly moved back into bear market territory, ending the week 19.9% below its early-2022. Growth stocks lagged their value counterparts. Europe, Japan and China equities dropped sharply over the week. Stocks started the week on a strong note helped by limited negative news flow regarding the Middle East over the weekend. Deepening tensions later in the week appeared to drain the gains, however.

US credit card default rate hits a new record high, US inflation slows, but at a sluggish pace and the IMF revises global growth projections downwards. Each week, the Syz investment team takes you through the last seven days in seven charts.

The major US equity indexes ended mixed as investors weighed inflation data against dovish signals from Fed officials. Large-cap value stocks outperformed, helped by earnings beats from Citigroup, Wells Fargo, and JPMorgan Chase. The banking giants kicked off the unofficial start to Q3 earnings reporting season. The prospect of a widening war in the Middle East boosted energy shares and defense stocks while weighing on airlines and cruise operators. Investors’ sentiment appeared to get a boost at the start of the week, after Fed Vice Chair Philip Jefferson told an economics conference in Dallas that he was mindful that the rise in long-term bond yields might affect the need for future rate hikes.

Last week, US debt rose by $275 billion to an unprecedented $33.44 trillion, its cost could soon represent around 20% of tax revenues and US banks are under pressure. Each week, the Syz investment team takes you through the last seven days in seven charts.

The major US equity indexes closed mixed with a 1.6% weekly gain for the Nasdaq and a -0.3% decline for the Dow as Large-cap growth stocks sharply outperformed value and small-caps. An equally weighted version of the S&P 500 Index lagged its market-weighted counterpart by the largest margin since March. Similarly, the S&P 500 outperformed the small-cap Russell 2000 Index by the widest margin over the same period. The most important macro data of the week was the US payroll report on Friday. Employers added 336,000 nonfarm jobs in September, roughly double consensus estimates. The details in the jobs report offered a more nuanced picture, however, which appeared to foster a market rebound.

Q3 2023 in the rear view After a strong first half of the year, the mood has shifted during the Summer as markets are adjusting to the reality of “persisting inflation & sticky rates”, a narrative which is adding pressure on equities and valuations. What has also changed in recent weeks has been some sense that the bill for the US fiscal profligacy is coming due, pushing long-dated bond yields to record highs. Here are 10 stories to remember from an eventful Q3 2023.