FINANCIAL STOCK MARKET  WEEK Market Week: August 26, 2024 

"Investors finally heard what they had been waiting for,"  by Wendy Nelson 

The Markets (as of market close August 23, 2024)

Investors finally heard what they had been waiting for after Federal Reserve Chair Jerome Powell gave clear indications that the central bank will lower interest rates in September.  Powell noted that the labor market has cooled and inflation is slowing.  In an up and down week for stocks, each of the benchmark indexes listed here ended up closing higher, led by the RUSSELL 2000.  Crude oil prices rallied at the end of the week, but not enough to avoid closing in the red.  Typically, falling interest rates stimulate economic growth, which includes rising demand for oil.  However, worldwide energy demand, particularly in China, has waned, keeping oil prices somewhat muted.  Ten of the 11 market sectors closed higher, led by materials, consumer discretionary, and financials.  Energy ticked lower.

Last Monday saw stocks continue to build off of the prior week's gains.  The S&P 500 (1.4%) and the NASDAQ (1.0%) moved higher for the eighth straight session, the longest streak of the year.  The small caps of the RUSSELL 2000 gained 1.2%, the GLOBAL DOW advanced 1.0%, and the DOW added 0.6%.  The dollar fell 0.6% to a seven-month low, as signs of waning inflation furthered expectations of an interest rate cut next month.  Ten-year Treasury yields dipped to 3.86%.  Crude oil prices fell nearly 3.0% to $74.52 per barrel on weak Chinese demand.  Gold prices rose 0.2%.

The winning streak for the S&P 500 and the NASDAQ ended at eight days following last Tuesday's downturn.  The RUSSELL 2000 declined 1.2%, the Nasdaq fell 0.3%, the S&P 500 dipped 0.2%, the Dow and the Global Dow slipped 0.1%.  Investors pulled back from stocks ahead of the upcoming Jackson Hole symposium, highlighted by a speech from Fed Chair Jerome Powell.  Among the market sectors, health care and consumer staples performed the best, while energy and materials were among the worst performers.  Yields on 10-year Treasuries continued to decline, settling at 3.81%.  Crude oil prices dropped to $73.82 per barrel.  The dollar fell 0.5% against a basket of currencies.  Gold prices rose 0.5%.

Stocks rallied modestly last Wednesday as minutes from the July Federal Reserve meeting indicated that policymakers would consider easing the restrictive economic policy in place (i.e., lower interest rates) in September.  The RUSSELL 2000 recouped most of the prior day's losses after gaining 1.3%.  The NASDAQ rose 0.6%, while the S&P 500 and the GLOBAL DOW gained 0.4%.  The DOW inched up 0.1%.  Crude oil prices closed in the red, settling at $71.94 per barrel.  Ten-year Treasury yields dipped to 3.77%.  The dollar declined 0.3%, while gold prices were relatively unchanged.

Volatile continued to best describe the stock market last week.  After moving higher last Monday, equities declined on Tuesday, rebounded on Wednesday, and fell on Thursday.  Investors awaited Fed Chair Jerome Powell's Jackson Hole speech with apprehension.  While the minutes from the July meeting seemed to support an interest rate decrease, investors may be looking for a more definitive indication from Powell.  A drop in tech shares pulled the NASDAQ down 1.7%.  The RUSSELL 2000 fell 1.0%, the S&P 500 lost 0.9%, the DOW declined 0.4%, and the GLOBAL DOW dipped 0.3%.  Ten-year Treasury yields rose to 3.86%.  Crude oil prices climbed 1.4% to $72.94 per barrel.  The dollar gained 0.5%, while gold prices edged lower.

Stocks posted solid gains following Fed Chair Powell's speech.  The RUSSELL 2000 gained 3.2% and the NASDAQ rose 1.5%.  The S&P 500 and the GLOBAL DOW added 1.2%, while the DOW advanced 1.1%.  Ten-year Treasury yields closed at 3.80%, as they approached their lowest level in 14 months.  Crude oil prices rose 2.6%, the dollar fell 0.8%, and gold prices rose 1.2%.

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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.