FINANCIAL STOCK MARKET  WEEK Market Week: July 15, 2024 

""Investors were encouraged by the most recent inflation data,"  by Wendy Nelson 

The Markets (as of market close July 12, 2024)

Investors were encouraged by the most recent inflation data, raising expectations of an interest rate cut in September. Each of the benchmark indexes listed here closed the week in the black, led by the Russell 2000.  The small-cap index recorded its best weekly performance since October 2023, while reaching its highest level since January 2022.  The expectation of falling interest rates and economic strengthening likely prompted the market shift to more interest-sensitive small- and mid-cap stocks.  The Dow rose above 40,000 at one point on Friday, ultimately closing at 40,000.  The S&P 500 climbed above 5,600.  Crude oil prices slipped lower.  While prices at the pump may have risen nationally last week, as of July 1, weekly U.S. average gasoline prices actually declined $0.19 per gallon since the 2024 high on April 22, falling to $3.48/gallon on July 1, $0.05 per gallon less than the price a year ago.  Increasing gasoline inventories, relatively weak demand, and oil prices below recent peaks contributed to falling gasoline prices.

Wall Street began the week with mixed results last Monday.  The Nasdaq (0.3%) and the S&P 500 (0.1%) reached new record highs.  The small caps of the Russell 2000 led the benchmark indexes listed here, climbing 0.6%.  The Dow and the Global Dow dipped 0.1%.  Ten-year Treasury yields inched lower to 4.26%.  Crude oil prices fell $0.90 to $82.26 per barrel.  The dollar edged up 0.1%, while gold prices fell 1.3%.  Not surprisingly, the market sectors were also mixed last Monday.  Information technology outperformed, while communication services fell over 1.0%.

Stocks were mixed last Tuesday.  While the Nasdaq and the S&P 500 ticked up a mere 0.1%, it was enough to reach new record highs for both indexes.  The Russell 2000, which had enjoyed a solid session the previous day, was unable to maintain that momentum after falling 0.5%.  The Global Dow lost 0.3%, while the Dow dipped 0.1%.  Fed Chair Jerome Powell spoke before the Senate last Tuesday and noted that more favorable data showing signs of cooling inflation could prompt the Fed to lower interest rates.  Yields on 10-year Treasuries edged up to 4.30%.  Crude oil prices fell for the second straight day, settling at about $81.59 per barrel.  The dollar and gold prices moved higher.

The Nasdaq (1.2%) and the S&P 500 (1.0%) stretched their respective streaks of record highs to five straight sessions last Wednesday.  This was the 37th record close for the S&P 500 in 2024 as it climbed above 5,600 for the first time in its history. The Dow and the Russell 2000 gained 1.1%, while the Global Dow advanced 0.6%.  Big tech and AI stocks helped drive the market surge, while investors took encouragement from Fed Chair Jerome Powell's comments to the House Financial Services Committee.  Ten-year Treasury yields fell to 4.28%.  Crude oil prices reversed a period of declines, rising to $82.38 per barrel.  The dollar slid 0.1%, while gold prices rose 0.4%.

The market was mixed last Thursday.  The Russell 2000 gained 3.6%, the Global Dow rose 0.5%, and the Dow inched up 0.1%. The streak of record highs ended for the Nasdaq (-2.0%) and the S&P 500 (-0.9%).  Megacap tech shares declined the furthest in over a year as investors, believing the Fed may cut interest rates as early as September, began to reshuffle their holding. Bond values increased, pulling yields lower, with the 10-year Treasury note falling to 4.19%.  Crude oil prices jumped $0.74 to $82.84 per barrel.  The dollar fell 0.6%, while gold prices rose 1.7%.

Stocks ended the week on a high note, with each of the benchmark indexes listed here posting gains last Friday.  The Russell 2000 enjoyed another notable day of gains after climbing 1.1%.  The Nasdaq, the S&P 500, and the Dow added 0.6%.  The Global Dow gained 0.5%.  Ten-year Treasury yields ticked lower for the third straight session, ending the day and the week at 4.18%.  Crude oil prices fell $0.34 per barrel last Friday.  The dollar and gold prices also closed the day lower.

• LAST WEEK'S ECONOMIC NEWS
• EYE ON THE WEEK AHEAD

Wendy Nelson, CEO of Wind River Wealth Advisors, aims to provide beneficial investment management, retirement planning, financial planning, asset management, and portfolio management to protect your money with knowledgeable strategies and plans by utilizing a personal independent financial advisor.