Weekly Market Recap – November 10, 2023
U.S. stock indexes experienced a modest boost, sustaining positive momentum after the previous week’s notable gains, marking the most substantial weekly increase in 2023. In this latest week, the NASDAQ saw an increase of over 2%, the S&P 500 rose by more than 1%, and the Dow concluded with a marginal gain.
The fixed-income markets continued to respond to shifts in the interest-rate outlook, with U.S. government bond prices reversing course and retreating from the prior week’s surge. Consequently, yields climbed, and the 2-year Treasury rate, sensitive to interest rate changes, edged back above 5.00% following remarks by Fed Chair Jerome Powell, indicating ongoing efforts to control inflation.
Oil prices witnessed their third consecutive weekly decline, reaching the lowest point since mid-July. Concerns about global economic data, portraying a mixed picture and impacting oil demand, contributed to this decline. By Friday, U.S. crude was trading around $77 per barrel, down from approximately $89 three weeks earlier.
A week after a robust 8% surge, a benchmark for U.S. small-cap stocks recorded a more than 3% weekly decline, significantly trailing the moderately positive performance of its large-cap counterparts. This outcome placed the Russell 2000 Index slightly in negative territory year-to-date and marked a 15% decrease from a recent peak on July 31.
A consumer sentiment survey revealed the fourth consecutive monthly decline in the U.S., fueled by concerns about elevated interest rates and escalating conflicts in the Middle East. The University of Michigan’s preliminary reading on consumer sentiment also indicated a rise in short-term inflation expectations to the highest level in seven months.
China’s government reported a sixth consecutive monthly decline in exports, coupled with a rise in imports. October witnessed a steeper-than-expected 6.4% decline in exports compared to the same month a year earlier, impacting China, the world’s second-largest economy.
An upcoming Consumer Price Index (CPI) report on Tuesday will unveil whether the previously observed mixed inflation trends persisted into October. The September CPI report indicated a 3.7% annual inflation rate, consistent with the previous month. Excluding volatile food and energy costs, September’s core inflation declined to 4.1% from 4.3% in the preceding month.
Major U.S. Economic Reports
|Federal Reserve senior loan survey||Oct|
|U.S. trade deficit||Sept||-$61.5B||$58.7B|
|Initial jobless claims||Nov 4||217,000||220,000|
|Consumer sentiment (prelim)||Nov||60.4%||63.8%|
Closing Prices for the Week
|Dow Jones Industrials Average||34,283.10|
|S&P 500 Index||4,415.24|
|CBOE Volatility Index||14.17|
|U.S. Dollar Index||105.861|
|10-Year T-Note (Dec ’23)||107-135|
|Crude Oil WTI (Dec ’23)||77.17|
|Natural Gas (Jan ’24’)||3.284|
|Gold (Dec ’23)||1,937.7|
|Silver (Dec ’23)||22.281|
|Corn (Dec ’23)||464-0|
|Wheat (Dec ’23)||575-2|
|Soybean (Jan ’24)||1347-4|
|Coffee (Mar ’24’)||170.55|
|Sugar #11 (Mar ’24)||27.29|
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