Charles-Henry Monchau

Chief Investment Officer



WEEKLY SUMMARY: Powell “pivot” triggered panic bids in bonds & stocks

The S&P 500 Index, Nasdaq Composite, and Dow Jones Industrial Average recorded their 7th consecutive week of gains—the longest streak for the S&P 500 since 2017. The gains lifted the first two benchmarks to 52-week highs and the Dow to an all-time record. Continuing a recent pattern, the week’s gains were also broadly based. The S&P 500 equal-weighted index outpaced its market-weighted counterpart by 131 basis points over the week. Small-caps also outperformed. The Cboe Volatility Index (VIX), the “fear gauge,” fell to its lowest level in the post-COVID era. In the 1st part of the week, investors’ sentiment was driven by a benign inflation environment; Tuesday’s US CPI was roughly in line with estimates while Wednesday’s PPI report surprised modestly on the downside. Stocks had their biggest advance of the week on Wednesday as the Fed indicated through their quarterly “dotplot” more rate cuts in 2024 (the median projection was for 75 basis points of rate cuts coming in 2024, up from the 50 basis points of easing in their previous projection). Long-term U.S. Treasury yields fell sharply on the inflation data and Fed signals, bringing the US 10-year Treasury yield below 4% for the 1st time since the end of July. The STOXX Europe 600 Index ended the week 0.92% as the ECB kept borrowing costs at record high (as the BoE and the SNB did). Japan’s stock markets rose over the week, with the Nikkei 225 Index gaining 2.1%. Chinese equities declined as persistent deflationary pressures weighed on the economic outlook. 


This marketing document has been issued by Bank Syz Ltd. It is not intended for distribution to, publication, provision or use by individuals or legal entities that are citizens of or reside in a state, country or jurisdiction in which applicable laws and regulations prohibit its distribution, publication, provision or use. It is not directed to any person or entity to whom it would be illegal to send such marketing material. This document is intended for informational purposes only and should not be construed as an offer, solicitation or recommendation for the subscription, purchase, sale or safekeeping of any security or financial instrument or for the engagement in any other transaction, as the provision of any investment advice or service, or as a contractual document. Nothing in this document constitutes an investment, legal, tax or accounting advice or a representation that any investment or strategy is suitable or appropriate for an investor's particular and individual circumstances, nor does it constitute a personalized investment advice for any investor. This document reflects the information, opinions and comments of Bank Syz Ltd. as of the date of its publication, which are subject to change without notice. The opinions and comments of the authors in this document reflect their current views and may not coincide with those of other Syz Group entities or third parties, which may have reached different conclusions. The market valuations, terms and calculations contained herein are estimates only. The information provided comes from sources deemed reliable, but Bank Syz Ltd. does not guarantee its completeness, accuracy, reliability and actuality. Past performance gives no indication of nor guarantees current or future results. Bank Syz Ltd. accepts no liability for any loss arising from the use of this document.

Read More

Straight from the Desk

Syz the moment

Live feeds, charts, breaking stories, all day long.

Thinking out loud

Sign up for our weekly email highlighting the most popular posts.

Follow us

Thinking out loud

Investing with intelligence

Our latest research, commentary and market outlooks