Market Trends Shift as Global Events Unfold
The S&P 500 index managed to secure a weekly gain, marking its fourth consecutive week of growth since mid-May. Despite a cautious atmosphere prevailing throughout the week, a robust jobs report on Friday injected new life into the market. The index ultimately closed the week in positive territory.
Geopolitical tensions took center stage on Tuesday, following Iran’s missile launch against Israel. The situation remained volatile, particularly on Thursday, as investors awaited a potential response from Israel. As a result, WTI crude oil futures surged over 9% for the week, with the energy sector emerging as the top-performing sector.
Meanwhile, a significant dockworkers’ strike at U.S. ports on the East and Gulf coasts made headlines, eventually ending with a new tentative agreement between the International Longshoremen’s Association and port operators. Friday’s nonfarm payrolls report revealed a substantial addition of 254,000 jobs in September, exceeding consensus estimates and leading investors to reassess their expectations for a large interest rate cut by the Federal Reserve in November.
For the week, the S&P 500 edged up 0.2%, while the Nasdaq Composite and Dow Jones Industrial Average both rose 0.1%. In contrast, the Russell 2000 declined 0.8%. Notable ratings from SA analysts included a warning that British American Tobacco shares are nearing a tipping point, as well as constructive views on Marvell Technology and a downgrade of Invitation Homes.
Global markets saw mixed performances, with the London FTSE 100 falling 0.5%, while the Shanghai Composite Index surged 8.1%. Crude oil prices jumped 9.2% to $74.45 per barrel, and gold prices inched up 0.2% to $2,673.2 per ounce. The U.S. 10-year bond yield dipped 0.2 basis points to 3.969%.
As the markets look ahead to next week, investors will be watching for key events and trends. Share your thoughts on where the markets are headed in the comments section.
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