Wall Street on the rise: what do economic data hint about the upcoming inflation report?
September 29, 2023 4:23 am
Investors, seemingly, were diligently analyzing the latest economic data, keeping a close eye on the situation in Washington. The question of the day: can US lawmakers prevent a prolonged government shutdown?
The dynamics of Treasury bond yields are also of interest. Its recent rise to a level we haven’t seen in 16 years made an impact on the stock market. However, the yield level of 10-year bonds at around 4.6% brings “relief,” as noted by Matt Staki from Northwestern Mutual Wealth Management Co.
Speaking of specific companies, Micron shares didn’t fare well after their forecast turned out to be far from rosy.
Which sectors stood out this week? The communication services sector added 1.2%, and the materials sector – 1%. However, utilities didn’t share this optimism, showing a decline of 2.2%.
In conclusion, as Staki noted: “After a few quite turbulent days, the market seems to have decided to take a little break.”
The S&P 500 index felt the pressure of recent months, falling by 6% since the end of July, but overall, for 2023, it remains up by 12%. This indicates that despite current fluctuations, investors are still confident in the market’s long-term prospects.
Positive news came from the economic growth front: second-quarter data confirms the stability of the American economy. However, not everything is so rosy: unemployment benefit claims have increased, and the real estate market showed a decline in contracts for the purchase of existing homes, exceeding forecasts.
As Friday approached, investors were keenly eyeing inflation, awaiting data on Personal Consumption Expenditures (PCE) prices. Kristina Hooper of Invesco emphasized the importance of this data, noting that the market is hoping for moderate figures.
On the political front, the Senate, under Democratic control, proposed a bipartisan bill to prevent yet another partial government shutdown — the fourth in a decade. However, the House of Representatives is leaning differently, intending to consider Republican bills which, seemingly, won’t get passed.
Regarding the corporate sector, Micron Technology shares felt the pinch, dropping 4.4% after the company gave a less-than-optimistic forecast on losses. The situation didn’t improve for Accenture either: their shares lost 4.3% due to bleak profit and revenue outlooks.
In conclusion, it’s worth noting that market activity was quite high: on NYSE, advancing stocks outpaced decliners by a count of 2.2 to 1. Additionally, there were 75 new all-time highs and 337 lows recorded. Despite short-term jitters, the market continues to forge ahead.
On Nasdaq, stock dynamics also indicated optimism: rising stocks outweighed falling ones, with a ratio of 1.5 to 1. On this platform, 39 new peaks and 303 lows were recorded.
Investor activity remained high, with a turnover of 10.7 billion shares, slightly exceeding the average of the last 20 trading sessions at 10.3 billion.
Shifting focus to the energy market, oil prices experienced a dip, retreating from a recent surge. Despite the drop, prices are near the highest level of the past year. Over the last three months, the oil market has showcased an impressive 30% increase, mainly due to decisions by Saudi Arabia and Russia to cut production. However, the momentum somewhat faded last week due to economic fluctuations and changes in demand.
This trend shifted when, on Wednesday, US government data revealed a larger-than-expected reduction in crude oil inventories. This factor became a catalyst for the resurgence in oil prices, highlighting the market’s sensitivity to changes in global reserves.
The material has been provided by InstaForex Company – www.instaforex.com
Investors, seemingly, were diligently analyzing the latest economic data, keeping a close eye on the situation in Washington. The question of the day: can US lawmakers prevent a prolonged government shutdown?
The dynamics of Treasury bond yields are also of interest. Its recent rise to a level we haven’t seen in 16 years made an impact on the stock market. However, the yield level of 10-year bonds at around 4.6% brings “relief,” as noted by Matt Staki from Northwestern Mutual Wealth Management Co.
Speaking of specific companies, Micron shares didn’t fare well after their forecast turned out to be far from rosy.
Which sectors stood out this week? The communication services sector added 1.2%, and the materials sector – 1%. However, utilities didn’t share this optimism, showing a decline of 2.2%.
In conclusion, as Staki noted: “After a few quite turbulent days, the market seems to have decided to take a little break.”
The S&P 500 index felt the pressure of recent months, falling by 6% since the end of July, but overall, for 2023, it remains up by 12%. This indicates that despite current fluctuations, investors are still confident in the market’s long-term prospects.
Positive news came from the economic growth front: second-quarter data confirms the stability of the American economy. However, not everything is so rosy: unemployment benefit claims have increased, and the real estate market showed a decline in contracts for the purchase of existing homes, exceeding forecasts.
As Friday approached, investors were keenly eyeing inflation, awaiting data on Personal Consumption Expenditures (PCE) prices. Kristina Hooper of Invesco emphasized the importance of this data, noting that the market is hoping for moderate figures.
On the political front, the Senate, under Democratic control, proposed a bipartisan bill to prevent yet another partial government shutdown — the fourth in a decade. However, the House of Representatives is leaning differently, intending to consider Republican bills which, seemingly, won’t get passed.
Regarding the corporate sector, Micron Technology shares felt the pinch, dropping 4.4% after the company gave a less-than-optimistic forecast on losses. The situation didn’t improve for Accenture either: their shares lost 4.3% due to bleak profit and revenue outlooks.
In conclusion, it’s worth noting that market activity was quite high: on NYSE, advancing stocks outpaced decliners by a count of 2.2 to 1. Additionally, there were 75 new all-time highs and 337 lows recorded. Despite short-term jitters, the market continues to forge ahead.
On Nasdaq, stock dynamics also indicated optimism: rising stocks outweighed falling ones, with a ratio of 1.5 to 1. On this platform, 39 new peaks and 303 lows were recorded.
Investor activity remained high, with a turnover of 10.7 billion shares, slightly exceeding the average of the last 20 trading sessions at 10.3 billion.
Shifting focus to the energy market, oil prices experienced a dip, retreating from a recent surge. Despite the drop, prices are near the highest level of the past year. Over the last three months, the oil market has showcased an impressive 30% increase, mainly due to decisions by Saudi Arabia and Russia to cut production. However, the momentum somewhat faded last week due to economic fluctuations and changes in demand.
This trend shifted when, on Wednesday, US government data revealed a larger-than-expected reduction in crude oil inventories. This factor became a catalyst for the resurgence in oil prices, highlighting the market’s sensitivity to changes in global reserves.
The material has been provided by InstaForex Company – www.instaforex.com
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