Last week, the stock market was like a game of musical chairs – everyone was scrambling to find their seat when the music stopped. The Dow Jones Industrial Average emerged as the show’s star, hitting a new record high of 41,563.08. It’s up 0.9% for the week and 10.3% year-to-date. Not too shabby, if I do say so myself.
The S&P 500 managed to eke out a modest 0.2% gain, closing at 5,648.40. Meanwhile, the Nasdaq Composite decided to take a little breather, slipping 0.9% to 17,713.62. As for the Russell 2000, well, it seems to have taken a page from my teenager’s book and remained stubbornly flat, closing at 2,217.63.
Now, let’s talk sectors:
- Information Technology: Tech had a wild ride this week, with NVIDIA’s earnings report causing more mood swings than a hormonal teenager. But like a phoenix rising from the ashes, the sector managed to rebound by Friday.
- Consumer Discretionary: This sector flexed its muscles, gaining 1.9% on Friday. It seems those positive earnings reports from retailers were just what the doctor ordered.
- Energy: Despite facing more headwinds than a kite in a hurricane, the energy sector managed to close 0.3% higher on Friday. Talk about resilience!
Speaking of NVIDIA, it was the belle of the ball this week. Despite some profit-taking, the stock closed at $119.37 on Friday, up 1.5% for the day. And get this – it’s still up a jaw-dropping 137% year-to-date. If NVIDIA were a student, it would be the one breaking the curve and making the rest of us look bad.
Other notable performers included Dell, Marvell, MongoDB, Amazon, and Tesla. It seems these companies found the secret sauce this week, and I, for one, would love to know their recipe.
Treasury yields saw some movement throughout the week. By Friday, the 2-year note yield settled at 3.93%, while the 10-year note yield reached 3.91%, both up 4 basis points for the day.
US Market Highlights
Now, let’s zoom in on some key events in the US market:
- The Fed’s favorite inflation gauge, the PCE Price Index, rose 0.2% in July. It’s like watching paint dry, but with much higher stakes.
- US retailers are singing the blues about weak consumer demand. Abercrombie’s CEO is warning of an “increasingly uncertain environment,” while Dollar General is blaming “financially constrained” customers for its cut outlook. It’s like a country song, but with less twang and more financial jargon.
- US pending home sales hit a record low in July, plunging 5.5%. It seems high prices and borrowing costs are putting a damper on the American dream of homeownership.
- In a plot twist worthy of a Hollywood blockbuster, Eli Lilly slashed the price of its GLP-1 drug Zepbound in half. At $399 per month, it’s still not exactly pocket change, but it’s a step in the right direction.
- Mark Zuckerberg is in hot water again, this time for criticizing the White House’s pressure on Meta to censor COVID-19 content. He also expressed regret over demoting the Hunter Biden story during the 2020 election. It’s like watching a high-stakes game of political hot potato.
Global Highlights
Let’s take a whirlwind tour around the globe:
- Eurozone inflation fell to 2.2% in August, with German inflation dropping below the ECB target. It’s like watching a magic trick – now you see inflation, now you don’t!
- The Bank of Japan is ready to hike rates faster than a cat up a tree. They’re keeping a close eye on market instability and the yen’s appreciation.
- Canada is playing hardball with China, imposing 100% tariffs on Chinese EVs and a 25% tariff on Chinese steel and aluminum. It’s like a trade war, but with more maple syrup.
- Disney and Reliance secured an $8.5B merger approval in India, creating the country’s largest entertainment entity. It’s like a Bollywood movie, but with more Mickey Mouse.
- Telegram founder Pavel Durov was arrested in Paris for allegedly failing to prevent criminal activities on the app. It’s a reminder that even in the digital age, you can’t outrun the long arm of the law.
Commodities & Crypto Corner
Oil prices this week were more volatile than my mood before my morning coffee. WTI crude oil futures started the week strong, settling 3.4% higher at $77.42/bbl on Monday. But by Tuesday, it had slid 2.3% to $75.61/bbl. It’s like watching a soap opera, but with barrels instead of beautiful people.
Gold prices hit new all-time highs above $2,500 per ounce. It seems investors are flocking to this shiny metal faster than seagulls to a dropped ice cream cone. Silver and platinum also saw gains, proving that sometimes, it pays to be second fiddle.
In the crypto world, Bitcoin held steady around $60,000, like a rock in a stormy sea. BlackRock’s Ethereum ETF crossed $1 billion in net inflows, showing that even the big boys want to play in the crypto sandbox. Some altcoins, including Tron and Cardano, outperformed Bitcoin, proving that sometimes, it’s the underdog that steals the show.
Calendar – The Week Ahead
Next week is a holiday-shortened one, with Monday being Labor Day. But don’t worry, there’s still plenty to keep us finance nerds entertained:
- Wednesday: JOLTS report
- Thursday: ADP’s monthly report on private employment
- Friday: August nonfarm payrolls report
On the earnings front, we’ve got some heavy hitters:
- Tuesday: Zscaler, GitLab, PagerDuty
- Wednesday: Hewlett Packard Enterprise, Dollar Tree, DICK’S Sporting Goods, Casey’s General Stores, C3.ai, ChargePoint Holdings
- Thursday: Broadcom, DocuSign, Samsara, NIO, Rent the Runway, Planet Labs
As the great Warren Buffett once said, “Be fearful when others are greedy, and greedy when others are fearful.” In these uncertain times, it’s worth remembering that market volatility is not just a challenge, but an opportunity for those who are prepared.
