WEEKLY SUMMARY: Another week, another all-time-high for the S&P 500
US stocks posted gains for the week, pushing the S&P 500 Index and Nasdaq Composite to record highs for the 2nd consecutive week. The Dow Jones rose 1.26%, while the Russell 2000 index climbed over 0.9%. Stocks were supported by headlines around several new trade deals during the week, including announcements that the U.S. had reached agreements with Japan, Indonesia, and the Philippines. Reports that the U.S. and EU are progressing toward a deal ahead of August 1 also appeared to boost sentiment during the week. On the earnings front, Alphabet gained more than 4% as results beat consensus estimates, while the company’s commentary around AI appeared to provide a tailwind for AI-related stocks. Meanwhile, Tesla’s report appeared to fall short of consensus expectations, driving the EV stock lower by 4.1% for the week. US Treasuries were mixed this week with short-end yields higher while long-end yields were down 6bps. In international markets, the STOXX Europe 600 Index rose 0.54% as ECB holds interest rates. Japan’s stock markets registered strong gains over the week, with the Nikkei 225 Index rising 4.1%. Japanese Auto original equipment manufacturers soared on the announcement that Japan and the U.S. had reached a trade deal. The dollar ended the week lower, despite a strong comeback the last two days. Gold fell for the 3rd day in a row, testing its 50DMA. Bitcoin also fell for the 2nd week in a row, testing $115k at two weeks lows.
Have a great week-end
Charles for the team
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U.S. stock indexes finished the holiday-shortened week higher, boosted by dovish comments from some Fed officials and several weaker-than-expected economic reports that seemed to reinforce the idea that a December rate cut remains on track. Small-cap stocks outperformed their large-cap peers, as the Russell 2000 Index advanced 5.5%. The Nasdaq Composite also posted strong returns, rebounding from the prior week’s sell-off as concerns regarding elevated valuations and spending on AI appeared to take a back seat to optimism around the growth potential from the technology. In economic news, U.S. retail sales increased by 0.2% in September (below +0.4% estimates). September PPI rose 0.3% in September, in line with estimates.


