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Written by Charles-Henry Monchau | Nov 4, 2023 3:32:32 PM

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WEEKLY SUMMARY: S&P 500 climbs 5.9% for the week, best since Nov ‘22

The #sp500 Index recorded its strongest weekly gain in nearly a year. Signs of a slowing economy and a rather dovish #FOMC meeting led to a sharp decrease in long-term bond yields. The gains were broad-based and led by the small-cap Russell 2000 Index, which scored its best weekly gain since October 2022. On Wednesday, the #Fed left rates steady, as expected, but investors appeared encouraged by the post-meeting statement, which signaled that the recent runup in long-term Treasury yields had achieved some of policymakers’ intended tightening in financial conditions. Friday’s US payrolls report seemed to confirm that the labor market was cooling. Employers added 150,000 jobs in October, below expectations and the lowest level since June, and September’s strong gain was revised lower. Meanwhile, the unemployment rate rose to 3.9%, its highest level since January 2022. The 10-year U.S. Treasury yield tumbled from 4.88% to an intraday low on Friday of around 4.48%, its lowest level since late September. In Europe, the STOXX Europe 600 Index rebounded from the previous week’s loss and ended 3.41% higher. In Asia, the #BoJ remained committed to its ultra-loose monetary policy stance at its October meeting, leaving its short-term lending rate unchanged at -0.1%. However, the #centralbank now allows yields to rise more freely—it will now regard its 1.0% ceiling for 10-year Japanese government #bond yields as a reference, rather than strictly capping interest rates at that upper bound.