Weekly Market Update - Trust Point
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Weekly Market Update:

Each week we will offer a very brief market update to help keep you informed on the latest. Want the latest delivered right to your email? Click HERE to provide your email address.

Market Updates

Week of February 19 – Global stocks rose 1.57% higher during the week, and international stocks closed 1.58% higher. For U.S. stocks, large-caps led the way and finished 1.68% higher, while small-caps closed 0.77% lower. In fixed income, U.S. bonds ended the week up 0.25%, and international bonds were 0.39% higher. After a strong earnings release from Nvidia on Wednesday, markets rallied higher. This helped lead the S&P 500, Dow Jones Industrial Average, and Nasdaq indices all to new 52-week highs on Friday. Even though more FOMC members are hesitant to cut interest rates soon because inflation levels have slowed their recent decline, markets remain resilient. One of the Fed’s key inflation measures, the Personal Consumption Expenditures (PCE) index, is due on Thursday and will help shape the path ahead for interest rates. Also, notable earnings released this week include Salesforce, Lowe’s, Macy’s, and Paramount.

Week of February 12 – Global stocks climbed 0.14% higher for the week, and international stocks closed 1.01% higher. In the U.S., large-cap stocks ended the week down 0.35%, and small-cap stocks were up 1.17%. For fixed income, U.S. bonds closed 0.55% lower, and international bonds rose 0.08% for the week. It was a weaker week for economic data as inflation came out higher than expected. This caused bond yields to rise and stock prices to fall briefly. Now, CPI and PPI have risen 3.1% and 0.9%, respectively, in the past year. Although it has been recently strong, U.S. retail sales were below expectations this month with a print of -0.8%. Looking ahead, one of the most prominent AI stocks, Nvidia Corp. (NVDA) will release quarterly earnings on Wednesday. Also, the Federal Reserve releases the minutes from its January meeting on Wednesday, and investors will try to read between the lines with potential rate cuts in the quarters to come.

Week of February 5, 2024 – Stock markets saw a relatively strong week. Global stocks rose 1.18%, and international stocks closed 0.68% higher. In the U.S., large-cap stocks finished the week up 1.40%, while small-cap stocks closed 2.42% higher. The S&P 500 ended the week above 5,000 for the first time as it continued its positive performance in 2024. For earnings, over half of the S&P 500 has reported Q4 with an average increase of around 9% for the quarter with average revenue up 3.4%. However, the index continues to be skewed due to the extreme overweight of mega-cap technology companies. The ‘Magnificent 7’ currently comprises around 26.5% of the index. Coming this week, economic data highlights inflation as the Consumer Price Index (CPI) is released on Tuesday, and the Producer Price Index (PPI) is released on Friday. Also, U.S. retail sales will print on Thursday, giving investors a glimpse into the health of the consumer.

Week of January 29, 2024 – Stock markets were mixed for the week as global stocks closed 0.88% higher, but international stocks finished the week 0.03% lower. For the U.S., large-cap stocks led the way up 1.40% for the week, and small-cap stocks closed 0.77% lower. As expected by investors, the Federal Reserve kept interest rates unchanged on Wednesday. Regarding earnings, aggregate year-over-year results for Q4 are so far positive and led mainly by strong profits from mega-cap technology companies. For fixed income, a larger than expected jobs report led yields higher as investors continue to see a strong labor market. Looking at the week ahead, Q4 earnings continue with notable results from Walt Disney, McDonald’s, Caterpillar, and Eli Lilly.

Week of January 22 – Markets were overall positive for the week with global stocks rising 1.17%, and international stocks closing 1.39% higher. In the U.S., large-cap stocks closed 1.06% higher, and small-cap stocks increased 1.75%. So far in Q4 earnings, companies have had no big surprises. However, investors will be watching markets close this week with around one-fifth of companies from the S&P 500 and Dow Jones Industrial Average reporting earnings. Also, the Federal Reserve will release its interest rate decision on Wednesday, and markets expect rates to be unchanged. Investors will be looking for signs of dovishness from the FOMC members as some see interest rate cuts on the horizon.

Week of January 15, 2024 – Markets were mixed for the week as global stocks closed 0.18% higher, and international stocks fell 1.53%. In the U.S., large-cap stocks closed 1.19% higher, and small-cap stocks dropped 0.32%. Most of the larger banks have now reported Q4 earnings, and the results are generally consistent or positive with expectations. However, most nominal earnings from these banks have fallen compared to the previous two quarters as higher interest rates and tight lending standards bring downward pressure on the sector. Home builder confidence was also released during the week and results were relatively optimistic. This optimism comes amid lower mortgage rates, which have declined from their October peaks. Coming this week, Q4 earnings will continue to be released with Tesla (TSLA), Procter & Gamble (PG), and Netflix (NFLX) being a few notable companies.

Week of January 8, 2024 – Markets were mainly positive for the week as global stocks rose 1.39%, and international stocks closed 0.53%. For the U.S., large-cap stocks closed 1.87% higher, and small-cap stocks slightly fell 0.01%. Inflation data was mixed on Thursday and Friday’s releases. The Consumer Price Index (CPI) came in slightly above expectations rising 0.3% in December. However, the Producer Price Index (PPI) was weaker than expected with a December print of -0.1%. Inflation continues to decline but remains above the Fed’s 2% annual target. Looking ahead, Q4 bank earnings continue with results from Morgan Stanley, Goldman Sachs, and Charles Schwab this week. Investors can also look for monthly housing data released on Thursday and Friday.

Week of January 1, 2024 – Market returns pulled back in the first trading week of the year. Global stocks fell 1.64%, and international stocks closed 1.61% lower. In the U.S., large-cap stocks ended the week down 1.50%, and small-cap stocks closed 3.73% lower. Economic data was mixed for the week as ISM services PMI was weaker than analysts’ expectations, but December jobs data was stronger than expected. Employers added more jobs, and the U.S. unemployment rate remained at a relatively low 3.7% in December. Although a strong labor market often coincides with a strong economy, it’s something that could keep interest rates high as the Fed tries to bring inflation down to its 2% target. Coming this week, key inflation data is released. The Consumer Price Index (CPI) print is due on Thursday and the Producer Price Index (PPI) on Friday.

Week of December 25, 2023 – Markets were mainly positive in the last trading week of the year as global stocks closed 0.74% higher, and international stocks rose 1.44%. For the U.S., large-cap stocks ended the week 0.34% higher, and small-cap stocks closed 0.27% lower. Friday ended a historically strong year for 2023 with global stocks finishing 22.22% higher year-to-date, and international stocks 15.46% higher. U.S. large-cap stocks ended the year 26.14% higher, and U.S. small-cap stocks 16.80% higher. Looking ahead, releases of ISM services PMI and the December jobs report are due on Friday. This will give investors more insight on the current state of the U.S. economy and labor market as we enter 2024.

Week of December 18, 2023 – Markets were positive for the week as global stocks rose 0.94% and international stocks closed 1.22% higher. For the U.S., large-cap stocks ended the week up 0.77%, and small-cap stocks closed 2.47% higher. Earnings releases from FedEx and Nike led the stocks lower for the week as both companies reduced their revenue outlooks. Looking ahead to this week, initial jobless claims are released on Thursday with various inventory data. Investors are also curious if the typical “Santa Claus Rally” will continue this year as markets historically move higher during the last five trading days.

Week of December 11, 2023 – Markets had a strong week as global stocks closed 2.38% higher and international stocks rose 1.95%. For the U.S., large-cap stocks climbed 2.52% higher, and small-cap stocks closed 5.58% higher. In their last meeting of the year, the Federal Reserve kept interest rates unchanged. The Fed also released their new economic projections stating 75 bps of interest rate cuts in 2024. For inflation data, the prints were relatively flat as the consumer price index (CPI) rose 10 bps in November, and the producer price index (PPI) remained unchanged. Coming this week, earnings from FedEx are due on Tuesday and Nike on Thursday in a lighter week for economic data.

Week of December 4, 2023 – Markets were mixed for the week as global stocks fell 0.02%, and international stocks closed 0.44% lower. For the U.S., large-cap stocks closed 0.24% higher, and small-cap stocks climbed 0.99%. Economic data surprised on the upside as ISM services and labor market data reported above median estimates. Markets had varied reactions to the positive data, and it will be interesting to see what changes in the busy week ahead. The final Federal Reserve meeting takes place this week with the Fed’s interest rate decision coming on Wednesday. Inflation data will also be reported. The consumer price index (CPI) release is due on Tuesday, and the producer price index (PPI) on Wednesday.

Week of November 27, 2023 – Global stocks rose 0.94% for the week, and international stocks closed 0.84% higher. For the U.S., large-cap stocks climbed 0.83%, and small-cap stocks closed 3.11% higher. Stocks had one of their best months of 2023 in November where global stocks saw a 9.04% return. However, manufacturing weakness continues in the U.S. as ISM manufacturing PMI remained below the sector’s break-even level for the 13th consecutive month. ISM services PMI is released on Tuesday this week and will provide more insight into the current state of the economy. Investors can also look ahead to jobs data released on Friday.

Week of November 20, 2023 – Overall, the stock market was positive for the week. Global stocks saw 0.95% return, and international stocks closed 0.76% higher. For the U.S., large-cap stocks rose 1.02%, and small-cap stocks closed 0.57% higher. Although Nvidia showed a healthy earnings report, other companies had mixed results during the week. Kohls, Best Buy, Nordstrom, and other retail companies reported lower quarterly sales than expected showing uneven consumer demand. This week, investors will have PCE (Personal Consumption Expenditures) data released on Thursday, and ISM manufacturing on Friday.

Week of November 13, 2023 – Markets saw a strong week as global stocks climbed 2.8% higher, and international stocks closed 3.5% higher. For the U.S., large-cap stocks rose 2.3%, and small-cap stocks closed 5.49% higher. Inflation data encouraged positive markets as investors celebrated weaker-than-expected prints. The Consumer Price Index (CPI) reported a 0% change, and the Producer Price Index (PPI) fell -0.5% for October. This was compared to a median forecast of +0.1% for each price index. Coming this week, Nvidia, a stock that has risen over 200% this year, reports earnings on Tuesday. Lowe’s, Best Buy, and Nordstrom are a few other names to mention that release earnings reports on Tuesday.

Week of November 6, 2023 – Markets were mixed for the week as global stocks closed 0.66% higher, and international stocks declined 0.44%. For the U.S., large-cap stocks closed 1.35% higher, and small-cap stocks fell 3.10%. Today, more than 90% of the largest 500 companies in the U.S. have reported third quarter financial results, and average earnings have grown by around 6.3% since Q3 2022. This week, investors will look ahead to various inflation data prints. The consumer price index (CPI) release is due on Tuesday, and the producer price index (PPI) is due on Wednesday.

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