Stocks Surge This Week – US Market Wrap
A flurry of data showing US economic resilience drove stocks to their best week this year, with dip buyers stepping in after a recent rout.
Equities extended their gains for the seventh consecutive session, with the S&P 500 posting its greatest performance in such a timeframe since October 2022. Just a week before Jerome Powell’s address in Jackson Hole, Wyoming, traders anticipate the Federal Reserve chief will set the tone for the upcoming policy meeting. While officials have pushed inflation down, the labour market remains a wild card.
The stock market had been on a four-week losing streak, fueled in part by concerns that the Fed would not decrease borrowing prices quickly enough to avoid a bigger slowdown in the world’s largest economy. This week’s data indicating declining inflation and a strong consumer reignited hopes that the Fed will be able to achieve a smooth landing.
The S&P 500 rose to around 5,555. Most megacaps gained, with NVIDIA leading the charge. Nike saw its longest winning streak in more than eight years. Applied Materials sank after a sales forecast that disappointed investors looking for a bigger payoff from artificial-intelligence spending. The VIX dropped below 15.
Treasury 10-year yields fell three basis points to 3.88%. The dollar had its third straight week losses, the longest streak since March. Hedge funds turned bullish on Japan’s currency for the first time since 2021 after sharp swings in foreign-exchange markets led to a blow-up of a popular yen trade. Gold hit $2,500, bolstered by hopes that the Fed is edging closer to cutting rates.