Stocks Poised to Close Out Best Week of the Year – Europe Market Wrap
A flood of data demonstrating the American economy’s resiliency has set US markets on track for their best week of the year.
The latest indicators, from inflation to jobless claims and retail sales, have calmed investors and fuelled confidence that the world’s largest economy is on track for a “Goldilocks” scenario of limited price pressures accompanied by robust growth. The S&P 500 is up 3.7% this week, while the Nasdaq 100 is up more than 5%, the largest gains for both indexes since November.
Stock markets around the world have largely recovered from last week’s losses, when traders were concerned that the Federal Reserve would not drop interest rates quickly enough to ensure a smooth landing for the US economy. In Europe, the Stoxx 600 Index rose 0.3% on Friday, heading for its highest week since May. US equities futures were largely unchanged.
The dollar fell, heading for a third week of falls, the longest losing stretch in more than five months. Treasury rates fell across the curve after jumping Thursday as strong US economic data pushed traders to reduce bets for a massive September Fed rate decrease. A 25 basis-point reduction is still completely priced, with more than 90 basis points of easing predicted by the end of 2024.
