WEEKLY MARKET RECAP – SEPTEMBER 27, 2024

U.S. stocks posted gains for the third consecutive week, continuing their rebound from the sharp decline seen in early September. The S&P 500 and the Dow both increased by 0.6%, building on the record highs set the previous week, while the NASDAQ rose 1.0%, leaving it 2.8% below its all-time high from over two months ago.

On Friday, the U.S. Federal Reserve’s preferred inflation gauge indicated a further, gradual easing of price pressures. The Personal Consumption Expenditures (PCE) Index increased by 2.2% annually in August, slightly below economists’ expectations and marking the lowest level since February 2021. The core PCE Index, which excludes energy and food prices, rose 2.7%, in line with forecasts.

Chinese stocks surged as the People’s Bank of China announced measures aimed at stimulating the country’s slowing economic growth. On Tuesday, the central bank revealed plans to lower borrowing costs, inject funds into the economy, and ease household mortgage repayment burdens.

The U.S. government’s latest estimate of second-quarter GDP confirmed a 3.0% annual growth rate, unchanged from earlier figures but slightly ahead of economists’ 2.9% prediction. Additionally, weekly unemployment claims fell to 218,000—the lowest in four months—indicating a strengthening labor market.

Consumer sentiment in the U.S. improved for the second consecutive month, continuing to recover from a downturn that began in the spring. The University of Michigan’s Consumer Sentiment Index rose to 70.1 in September, up from 67.9 in August.

In Europe, a key stock index climbed over 2% for the week, reaching a record high. The rally was driven by China’s economic stimulus announcement and better-than-expected inflation data from France and Spain. Stocks in sectors such as chemicals and automobiles were among the best performers.

U.S. crude oil prices fell nearly 4% for the week, dropping below $69 per barrel by Friday. This marks a decline from a recent peak of almost $84 per barrel in early July, with prices remaining relatively unchanged year to date.

A monthly jobs report due on Friday will reveal how September’s employment growth compares to August’s increase of 142,000 jobs. While August’s figure was higher than the previous month’s, it fell short of economists’ expectations. Additionally, June and July job gains were revised down by a total of 86,000.

Major U.S. Economic Reports

Closing Prices for the Week

Trading futures and forex involves significant risk of loss and is not suitable for everyone.