The markets pulled back again last week as investors shifted out of high-flying AI names and into more value-oriented sectors. The Nasdaq 100 and small-cap Russell 2000 saw the largest declines, while the Dow held up comparatively well.
Although the government shutdown has ended, we won’t start seeing fresh economic data until this week—and concerns that upcoming reports may not support another potential Fed rate cut in December added to the week’s volatility.
Market & Rate Highlights
- Treasury yields moved higher, with the 30-year at 4.744% and the 10-year at 4.142%.
- Freddie Mac reported the average 30-year mortgage rate rising to 6.24%.
- Crude oil slipped to $60.15 per barrel, while natural gas climbed to $4.718.
- The U.S. dollar eased to 99.32, and gold strengthened to $4,101.80 per ounce.
Last Week’s Economic Updates
- OpenBrand reported consumer prices for big-ticket and personal-care items rose 0.22% in October, down from 0.48% in September.
- China’s latest data showed:
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- Fixed-asset investment down 1.7% year-to-date.
- Industrial output up 4.9% year-over-year, down from 6.5% in September.
- Retail sales rising 2.9%, slightly below last month’s pace.
- Consumer prices up 0.2% from last October; core CPI (ex-food & energy) rose 1.2%.
- EIA petroleum report:
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- U.S. crude oil production rose from 13.651MM to 13.862MM barrels per day.
- Natural gas storage increased by 45 billion cubic feet, pushing levels above the five-year seasonal high.
- Baker Hughes reported oil rigs rising by 3 to 417, while gas rigs fell by 3 to 125.
- FactSet noted that with 92% of S&P 500 companies reporting, blended earnings growth stands at a solid 13.1%.
If you have any questions about the markets or your financial plan, we’re always here to help.
Loren Rex – Emeritus
Erik A Smith, AIF® – President & C.E.O.
Nicholas Acri, CFP® – Partner & Wealth Advisor
Dylan Thomas, CFP® – Partner & Wealth Advisor
These are the opinions of Loren Rex and Erik Smith and are not necessarily those of Cambridge, are for informational purposes only, and should not be construed or acted upon as individualized investment advice. The Indices mentioned are unmanaged and cannot be invested into directly. The Dow Jones Industrial Average, Dow Jones, or simply the Dow, is a stock market index of 30 prominent companies listed on stock exchanges in the United States. The DJIA is one of the oldest and most commonly followed equity indexes. The Nasdaq Composite is a stock market index that includes almost all stocks listed on the Nasdaq stock exchange (more than 2500 stocks).
Sources:
https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WCRFPUS2&f=W
https://ir.eia.gov/ngs/ngs.html
https://www.freddiemac.com/pmms
https://www.wsj.com/market-data?mod=nav_top_subsection
https://bakerhughesrigcount.gcs-web.com/na-rig-count
