The S&P 500 Index and the Dow Jones both moved to record highs over the week, helped by some upside surprises to kick off earnings season. Shares in JPMorgan Chase and Wells Fargo rose on Friday after they reported smaller-than-feared declines in Q3 profits. A solid rise in NVIDIA shares helped growth stocks outperform value stocks and compensate for a decline in Google parent Alphabet. Tesla was also weak following a skeptical response to the company’s highly anticipated unveiling of its new “robotaxis” and “robovans.” The earnings focus arguably offset several disappointing economic reports over the week: headline and core (less food and energy) inflation rose in September by 0.2% and 0.3%, respectively, both a tick above expectations. The Labor Department reported a surprise jump in weekly jobless claims to 258,000, the highest level in 14 months. These numbers led to a significant change in expectations for the Fed’s next policy meeting in November, with futures markets pricing in a decent (14.1%) chance of the Fed keeping rates steady. The 10-year US Treasury note hit its highest intraday level (4.12%) since July 31. The dollar rallied for the second straight week, testing up to August's highs before stalling a little on Friday. Despite the dollar strength, Gold ended the week higher, finding support at $2600 once again. WTI Oil is back above $75. Bitcoin exploded back higher today (from $59,000 to $63,000), to end the week solidly in the green (after testing near one-month lows).
Have a great week-end
Charles for the team