Stocks extended their rally last week, with the S&P 500 and NASDAQ reaching new record highs. Stock trader confidence was boosted by strong third-quarter earnings, particularly from major banks, and easing concerns about trade after news of an upcoming U.S.-China meeting. Softer-than-expected inflation data also raised hopes for a Federal Reserve rate cut following this week’s meeting. Tech, and communication services, led sector gains, while gold prices dipped after weeks of strong performance. Ten-year Treasury yields slipped below 4.0%, and oil prices surged late in the week after U.S. sanctions on Russian energy companies.
Last Week’s Economic News
- Most economic data releases remain delayed due to the government shutdown.
- The Consumer Price Index rose slightly in September, driven largely by gasoline prices and energy costs. Core prices, excluding food and energy, increased some. Over the past 12 months, both overall and core CPI rose a bit.
- Existing-home sales increased in September and were up 4.1% year over year. Falling mortgage rates and improving affordability supported sales gains, though prices dipped slightly from August.
- The national average price for regular gasoline fell to $3.02 per gallon on October 20, lower than a year ago.
Eye on the Week Ahead
With limited data available during the shutdown, attention will turn to the Federal Reserve’s policy meeting this week, where investors widely expect an interest rate cut.
Have a nice week!
Sincerely,
Robert G. Carpenter