Stocks managed to post solid gains and largely recovered from the previous week’s steep losses. Growth stocks outpaced value shares by a wide margin, helped by strong performance from technology stocks which rallied aggressively higher midweek after NVDA CEO Jensen Huang said "demand was incredible“. They extended that sudden squeeze into Friday. On Wednesday, stocks initially headed sharply lower following news that core (less food and energy) consumer inflation rose to 0.3% in August, a tick higher than consensus expectations. Meanwhile, headline inflation showed an annual increase of 2.5%, well below July’s increase of 2.9% and its lowest level since early 2021.

Nvidia’s record $280 billion loss led a sharp decline in the Nasdaq’s “Magnificent 7” amid a slowing U.S. job market and potential market turbulence before the election. Each week, the Syz investment team takes you through the last seven days in seven charts.

A string of disappointing labor market data last week spooked investors, pushing them toward bonds. The U.S. yield curve is now positive, while the 10-year Treasury yield has hit a one-year low.

Worries over an economic slowdown appeared to weigh on sentiment as the S&P 500 recorded its worst weekly performance since March 2023 . Tech shares led the declines, driven in part by a drop in NVIDIA following rumors that it may be the subject of a Justice Department antitrust investigation, which led to a roughly USD 300 billion drop in the chip giant’s market capitalization. Energy shares were also especially weak on the back of a decline in oil prices. Conversely, the typically defensive utilities, consumer staples, and real estate sectors held up better. US economic data generally surprised on the downside, raising fears that the Federal Reserve had waited too long to ease monetary policy.

Nvidia shares tumble despite stellar results, a new trillionaire rises, and equity markets brace for their two worst months. Each week, the Syz investment team takes you through the last seven days in seven charts.

August closed on a positive note for fixed income, with U.S. Treasuries averaging a +1.5% gain, as markets reacted to a moderating job market and the prospect of the Fed's anticipated rate cuts.

August was a volatile month with US equities pulling back at the start the month before rallying back to unchanged. Last week, the main US equity indices ended mixed. Trading was light ahead of the US holiday weekend (Labor Day). The Nasdaq Composite fared the worst, dragged lower in part by chip giant NVIDIA, which lost nearly 10% of its value, at the stock’s low point on Thursday. Relatedly, value stocks outperformed growth shares by the largest margin since late July. The US core personal consumption expenditures (PCE) price index showed prices rising by 0.2% in July, largely as expected. This seemed to please investors as it is a confirmation that inflation was remaining subdued and near the Fed’s target.

Gold prices are hitting record highs, US Job Growth Slashed by 818,000, and the S&P 500’s value relative to gold mirrors 1971 levels. Each week, the Syz investment team takes you through the last seven days in seven charts.

The bond market surged this week, driven by growing expectations of an imminent rate cut from the Federal Reserve. With yields dropping across the curve, investors are positioning for a more accommodative monetary policy as the Fed shifts its focus towards stabilizing growth and managing a cooling job market

The Dow Jones and S&P 500 Index moved back toward record highs this week, as investors appeared to celebrate Fed Powell’s announcement at Jackson Hall that interest rate cuts would soon be coming. The gains were also broad-based, with small-caps outperforming large-caps and an equal-weighted version of the S&P 500 Index outpacing its capitalization-weighted counterpart. However, trading activity was exceptionally light through most of the week. On Friday, stocks jumped at the open of trading following the release of the text of Powell's speech at Jackson Hole, in which he acknowledged that “the time has come for policy to adjust”—implying that policymakers would cut rates in September. Moreover, Powell appeared to leave room for a cut of 50 basis (instead of 25 basis points).