Market Recap
Equity markets continued to struggled this week, as geopolitical concerns flared and a few household names reported weaker than expected earnings results.
The S&P 500 recorded its worst week in about six months as it has fallen six days in a row – a first since October of last year. It is also the third consecutive week of losses and its worst weekly performance since October.
NASDAQ has also retreated the past 6 sessions and recorded its fourth consecutive weekly loss, its longest negative streak since December 2022. It is also NASDAQ’s worst weekly performance since March 2023.
The decline was driven by geopolitical tensions in the Middle East, an increased likelihood that rates will not be cut by the Fed this year and a number of high-profile names that struggled with earnings.
Small-caps continued to struggle and the small-cap Russell 2000 ended the week firmly in the red for the year-to-date.
There was a lot of economic data this week and most of it supported the notion that the Fed would push back interest rates cuts to much later this year, if at all.
The Commerce Department reported that retail sales rose 0.7% in March, well above consensus expectations.
Then some negative housing market data spooked investors as housing starts and permits in March came in well below expectations. Finally, the average 30-year mortgage rate climbed above 7% for the first time in 2024.
Weekly Chart Review
What’s Going On In Your Portfolio?
Our clients’ portfolios continue to remain allocated in cash as our models are in a “wealth preservation mode”.
Key technical levels continue to break down as the stock market is coming to the realization that inflation is not going away anytime soon.
The major indicies are still showing negative momentum. As I mentioned in this week’s video, I will be watching for opportunities in areas where momentum has shifted from negative to postive.
Upcoming Economic Data to Keep an Eye On
Source: Trading Economics
