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