Market Recap
The U.S. stock market had a highly turbulent week, starting with a significant drop on Monday—the 12th largest single-day point decline in the DJIA’s history.
However, the major indices made a strong recovery mid-week, largely driven by a rally in technology stocks. Nvidia and Uber were standout performers, benefiting from robust earnings reports and positive sentiment around AI advancements.
By the end of the week, the S&P 500 was nearly unchanged, while the NASDAQ fell by 0.2% and the S&P 500 dropped by 0.6%. The smaller-cap Russell 2000 had a tougher week, declining by 1.4%.
Several earnings reports raised concerns about weakening consumer demand. Airbnb, Marriott, United, Delta, Hilton, and Disney all reported lower travel demand, and Yum! Brands noted slower sales at KFC and Pizza Hut.
Overall, the market was overshadowed by uncertainty regarding future Federal Reserve actions and the strength of the labor market.
The Week in Charts
What’s Going On In Your Portfolio?
Client portfolios still remain in cash and/or hedged.
As I mentioned in this week’s video update, the current “weight of the evidence” still favors further weakness in the market.
Bond portfolios continue to be fully invested in High Yield bonds, which is an indication that the longer term trend of the market is still intact.
I will be closely watching to see how the market reacts to upcoming inflation data, and any an opportunities that may arise.
Upcoming Economic Data to Keep an Eye On
Source: Trading Economics
