FINANCIAL STOCK MARKET  WEEK Market Week: August 5, 2024 

"Wall Street experienced a notable downturn last week,"  by Wendy Nelson 

The Markets (as of market close July 26, 2024)

Wall Street experienced a notable downturn last week, with each of the benchmark indexes closing sharply in the red.  A weaker-than-expected jobs report, rising unemployment claims, disappointing corporate earnings from major tech firms, and falling manufacturing data prompted the major sell-off last week.  Evidence of a slowing economy may prompt the Federal Reserve to cut interest rates in September, but many analysts and investors believe the Fed is behind the curve in cutting rates, especially when other central banks have already done so.  There was a huge swing in the market sectors last week, where utilities (4.5%) and real estate (3.9%) turned sharply higher, while information technology (-4.1%), consumer discretionary (-3.8%), and energy (-3.4%) turned sharply lower.  Bond prices jumped higher as demand increased, pulling yields lower.  Ten-year Treasury yields fell to their lowest level since December 2023.  Crude oil prices dropped by more than 3.5%, while gold prices climbed higher.

The week kicked off with the Nasdaq, the S&P 500, and the Global Dow ticking up minimally, while the Dow dipped 0.1% and the Russell 2000 fell 1.1%.  Investors awaited the release of quarterly earnings from several tech companies, the outcome of the Federal Reserve's latest meeting, and labor data for July.  Bond prices held steady, with yields on 10-year Treasuries slipping to 4.17%.  Crude oil prices continued to fade, down 1.7% to $75.83 per barrel.  The dollar gained 0.2%, while gold prices were essentially unchanged.

Last Tuesday saw investors flee stocks, particularly tech shares, and move to bonds after an acceleration of the unrest in the Middle East and ahead of the Fed's meeting on Wednesday.  The tech-heavy Nasdaq lost 1.3%, while the S&P 500 fell 0.5% behind weakness in technology, consumer discretionary, and consumer staples.  However, the Dow (0.5%), the Russell 2000 (0.4%), and the Global Dow (0.2%) moved higher.  Demand for bonds drove prices up and pulled yields lower.  Ten-year Treasury yields fell to 4.14%.  Crude oil prices declined to $75.08 per barrel.  The dollar was unchanged, while gold prices gained 1.2%.

Stocks closed up last Wednesday as investors were encouraged that interest rates may be reduced in September following statements from the Federal Open Market Committee and its chair, Jerome Powell.  Each of the benchmark indexes listed here climbed higher, led by the Nasdaq (2.6%), followed by the S&P 500 (1.6%), the Global Dow (1.2%), the Russell 2000 (0.5%), and the Dow (0.2%).  Tech stocks, which had been trending lower, reversed course, helping to drive the indexes higher.  Ten-year Treasury yields dipped to 4.10%.  The dollar fell nearly 0.5%, while gold prices rose 1.7%.  Crude oil prices, which had been sinking, jumped 5.1% to $78.53 per barrel.

A sharp sell-off in chip stocks sent the markets reeling last Thursday.  Each of the benchmark indexes ended the session firmly in the red, led by the Russell 2000 (-3.0%) and the Nasdaq (-2.3%).  The remaining benchmarks fell between 1.2% and 1.6%.  Ten-year Treasury yields declined 3.2%, or 13.3 basis points, settling at 3.97%, moving below the 4.00% level for the first time since February.  Crude oil prices dropped to $76.90 per barrel.  The dollar and gold prices gained 0.3% and 0.6%, respectively.  Investors reacted to contraction in the manufacturing sector (see below) and jobless claims rising to an 11-month high.

Stocks plunged lower last Friday as investors saw unemployment claims rise and job gains fall.  The interest-sensitive Russell 2000 lost 3.5%, followed by the Nasdaq (-2.4%), Global Dow (-2.1%), the S&P 500 (-1.8%), and the Dow (-1.5%).  Ten-year Treasury yields dropped over 18.0 basis points, crude oil prices fell 2.9%, the dollar slipped 1.1%, while gold prices were unchanged.

• STOCK MARKET INDEXES
• 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.