WEEKLY MARKET RECAP – SEPTEMBER 6, 2024
U.S. stock indexes experienced some of their steepest weekly declines in over a year, with the NASDAQ dropping nearly 6%, the S&P 500 losing over 4%, and the Dow falling by almost 3%. Technology stocks took a major hit due to renewed concerns about short-term profit prospects from artificial intelligence.
Ahead of the U.S. Federal Reserve’s mid-September meeting, Friday’s report revealed that the economy added 142,000 jobs in August. Although this was an improvement from the previous month, it fell short of the expected 160,000 jobs, and job estimates for June and July were revised down by a combined 86,000.
U.S. government bond yields fell sharply, driven by expectations of an interest-rate cut at the Fed’s September 18 meeting. The 10-year Treasury yield ended the week at 3.72%, its lowest since June 2023 and down from 3.92% the previous week.
U.S. crude oil prices tumbled nearly 8% for the week, reaching their lowest level in 14 months, trading around $68 per barrel on Friday afternoon. Concerns over weakening demand in both the U.S. and China weighed on prices, which had been above $80 as recently as mid-July.
As stocks fell, market volatility surged, with the Cboe Volatility Index jumping 49% for the week. Despite Friday’s close at around 22, it remained well below its August 5 peak of nearly 39 during a short-lived surge in volatility.
Small-cap stocks faced particularly high volatility, significantly underperforming large-caps. The Russell 2000 Index, a key small-cap benchmark, dropped nearly 6%, reaching its lowest point since mid-August.
Utilities led earnings growth with a 21% increase over the previous year’s second quarter, according to FactSet. Across all S&P 500 sectors, earnings grew by an average of 11.3%, marking the strongest earnings growth since the fourth quarter of 2021.
An upcoming Consumer Price Index (CPI) report, scheduled for release on Wednesday, will be one of the final data points considered by the Fed as it deliberates cutting its key interest rate by 25 or 50 basis points at the September 18 meeting. The latest CPI report from August showed an annual inflation rate of 2.9%, the first time it has dipped below 3.0% since early 2021.
Major U.S. Economic Reports
| Report | Period | Actual | Previous |
| S&P final U.S. manufacturing PMI | Aug. | 47.9 | 48.0 |
| Construction spending | July | -0.3% | -0.3% |
| ISM manufacturing | Aug. | 47.2% | 46.8% |
| U.S. trade deficit | July | -$78.8B | -$73.1B |
| Job openings | July | 7.7 million | 7.9 million |
| Factory orders | July | 5.0% | -3.3% |
| Auto sales | Aug. | 15.1 million | 15.8 million |
| ADP employment | Aug. | 99,000 | 111,000 |
| Initial jobless claims | Aug. 31 | 227,000 | 232,000 |
| U.S. productivity (revision) | Q2 | 2.5% | 2.3% |
| U.S. unit-labor costs (revision) | Q2 | 0.4% | 0.9% |
| S&P final U.S. services PMI | Aug. | 55.7 | 55.2 |
| ISM services | Aug. | 51.5% | 51.4% |
| U.S. employment report | Aug. | 142,000 | 89,000 |
| U.S. unemployment rate | Aug. | 4.2% | 4.3% |
| U.S. hourly wages | Aug. | 0.4% | 0.2% |
| Hourly wages year over year | 3.8% | 3.6% |
Closing Prices for the Week
| Contract | Close |
|---|---|
| Dow Jones Industrials Average | 40,345.41 |
| Nasdaq Composite | 16,690.83 |
| S&P 500 Index | 5,408.42 |
| CBOE Volatility Index | 22.38 |
| S&P GSCI | 511.05 |
| U.S. Dollar Index | 101.177 |
| 10-Year T-Note (Dec ’24) | 115-005 |
| Crude Oil WTI (Oct ’24) | 67.67 |
| Natural Gas (Oct ’24) | 2.275 |
| Gold (Dec ’24) | 2,524.6 |
| Silver (Dec ’24) | 28.183 |
| Corn (Dec ’24) | 406-2 |
| Wheat (Dec ’24) | 567-0 |
| Soybean (Nov ’24) | 1005-0 |
| Coffee (Dec ’24) | 236.00 |
| Sugar #11 (Oct ’24) | 18.91 |
| Cocoa (Dec ’24) | 7,081 |
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