US Equity Markets rallied last week, as Fed Chairman Powell confirmed in a speech that economic data justify a rate cut at the Fed's next meeting in September. The S&P 500 rose 1.5% for the week to bring its gains for the year to 18.1%. The Nasdaq was up 1.4% for the week and is now up 19.1% for the year, while the Russell 2000 (small cap stocks) surged 3.6% for the week to bring its gains for the year to 9.5%.
Global Equity Markets rose last week, buoyed by rate cut hopes in the US, positive growth data out of Europe, and cooler inflation data in Asia. Developed Markets rallied 3.8% for the week and are now up 9.0% for the year. Emerging Markets increased 2.3% for the week to bring its gains for the year to 7.5%.
Interest Rates fell last week as investors anticipate Fed rate cuts. The yield on the US 10-Year Treasury dropped to 3.80% vs. 3.88% the prior week following the speech by Chairman Powell. Investors now believe that the Fed will reduce rates by a full 1.0% by the end of the year.
Of Interest to Us
A Canadian rail strike went into effect at the end of the week with a work stoppage at least through Monday. If the work stoppage ends on Monday, then the economic impact in the US would likely be immaterial. If the rail strike continues for an extended period, that could cause supply disruptions for a wide range of goods including grains and beans to coal and timber. It would also likely cause prices to move higher.
Market Data
for the week ending 8/23/2024
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