Markets saw a choppy but overall mixed performance last week as the federal government reopened after a prolonged shutdown. Stocks initially rallied on renewed optimism but lost momentum as concerns grew over AI stock valuations and uncertainty surrounding the Federal Reserve’s next policy move. The NASDAQ and Russell 2000 ended the week lower, while the S&P 500, Dow, and Global Dow posted modest gains. Sector performance varied widely, with health care, energy, and materials leading, while consumer discretionary and communication services lagged. Treasury yields rose as expectations for a December rate cut faded, and crude oil prices were little changed as markets continued to grapple with rising U.S. inventories and ongoing overproduction concerns.
Last Week’s Economic News
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Economic data releases remain limited due to the government shutdown.
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The national average retail price for regular gasoline rose to $3.056 per gallon on November 10, higher than one year ago.
Eye on the Week Ahead
With the shutdown resolved, delayed economic data should begin to be released. Markets will be watching for labor market updates, inflation data, and any signals ahead of the Federal Reserve’s December meeting.
Have a nice week!
Sincerely,
Robert G. Carpenter