WEEKLY SUMMARY: Bonds, bullion, & bitcoin rose on bad macro data
Most U.S. equity indexes finished the holiday-shortened week higher. The Nasdaq Composite finished the week 1.14% higher, supported by shares of Apple and Google parent Alphabet, which both rose in the wake of an antitrust ruling that some investors viewed as less severe than expected. Smaller-cap stocks, which can be more sensitive to interest rate movements than larger companies, also advanced for the week. The S&P 500 Index added 0.33%, while the Dow Jones Industrial Average lost 0.32%. The week’s economic calendar brought several reports that painted a bleak picture of the health of the U.S. labor market. The closely watched report revealed that U.S. employers added just 22,000 jobs in August, a sharp decline from July’s revised figure of 79,000 and well below estimates for around 77,000. As of Friday afternoon, futures markets tracked by the CME FedWatch tool were pricing in a 100% chance of at least a 25-basis-point rate cut at the Fed’s next meeting. Manufacturing activity shrinks for sixth straight month; services sector expands. In Europe, the STOXX Europe 600 Index ended 0.17% lower amid concerns about global growth after weak U.S. jobs data and a stronger euro. Japan’s stock markets rose over the week, with the Nikkei 225 Index gaining 0.70% and the broader TOPIX Index up 0.98%. Mainland Chinese stock markets declined as investors pocketed gains after a recent rally. The dollar ended the week practically unchanged. Oil prices plunged to their lowest in three months. Gold surged up to a new nominal record high.
Have a great week-end
Charles for the team
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The S&P 500 closed at a fresh all-time high on Friday, rising for a 5th consecutive week, its longest weekly winning streak since 2024. This brings the index up +15% since the March 30 low, also marking April as the best month for stocks since November 2022. Stocks largely shrugged off the stream of sometimes conflicting headlines about the war in the Middle East and a surprisingly hawkish Federal Reserve policy meeting to post solid gains in most major indexes. Large-cap stocks outpaced small-caps, and value outperformed growth. Five of the “Mag 7” companies reported earnings, with financial results generally meeting or exceeding expectations for these bellwether firms. Meanwhile, major central banks keep rates on hold amid war uncertainty.


