The multi-week bull run came to an end last week as a broad selloff in technology stocks weighed heavily on the markets. The NASDAQ saw a correction amid concerns over overvaluation in the tech sector. The S&P 500 posted its largest weekly loss in a month, while the Dow and Russell 2000 also declined. Although most reporting S&P 500 companies have exceeded earnings expectations, a few high-profile misses dampened stock traders’ sentiment. The ongoing government shutdown added another layer of uncertainty.
Looking at a snapshot of this past week only, technology, communication services, and consumer discretionary were the weakest-performing sectors, while health care, real estate, energy, and financials outperformed. Crude oil prices fell for a second consecutive week due to growing inventories, increased OPEC+ production, and price cuts from Saudi Arabia.
Last Week’s Economic News
- Manufacturing output edged higher in October, supported by the strongest gain in new orders in nearly two years.
- The services sector continued to expand at a solid pace in October, with sustained growth in new business.
- The national average retail price for regular gasoline fell to $3.019 per gallon on November 3, lower than a year ago.
- Most other economic data remain unavailable due to the ongoing government shutdown.
Eye on the Week Ahead
With most government agencies still closed, limited economic data will be available. Investors will continue to monitor the duration of the shutdown, along with global developments affecting energy prices and trade.
Have a nice week!
Sincerely,
Robert G. Carpenter