Investment Week at a Glance
Stocks finished mixed for the week. The Dow Jones Industrial Average rose 1.5%, the S&P 500 was up 0.3%, and the NASDAQ fell 0.6%. Foreign stocks (MSCI EAFE) were down, falling 0.4%. Bond prices were up for the week, with the 10-year U.S. Treasury ending the week at 4.26%. (Data source: Wall Street Journal)
Markets Rise Sharply Friday During Powell’s Speech
Last week was the annual Jackson Hole Symposium, and Fed Chair Powell spoke on Friday. There was much anticipation as investors were hopeful of some clarity on a possible rate cut. While Powell has been hesitant to show the possibility of a rate cut in the past, he indicated a cut may be necessary to help the labor market. This sent markets higher and yields lower as a September rate cut now seems very likely. We will see some important inflation and employment data before the next meeting, but if there is no big surprise in the data, many investors see a rate cut happening next month.
Consumer Stays Strong
Walmart and Target reported earnings last week, and both beat expectations despite tariff worries. Amazon saw a strong 11% growth in North American retail sales. Home Depot and Lowe’s both reported that consumers continue to spend on small-scale home-improvement projects. All this would point to a strong consumer despite tariff worries. With the consumer driving the U.S. economy, the probability of a recession remains relatively low according to economists.
Ceasars Stock Rises 7% Friday
Caesars’ stock had a strong day on Friday, rising 7% after the odds of a rate cut rose, helping boost the travel and leisure sectors. The company has had a rough year as the stock is down nearly 18% despite the move higher. Investors are hopeful for a return to Vegas for travelers after a slow summer. Caesars also announced Blake Shelton will have an 8-show residency in January 2026 as they continue to invest to attract high-end talent. (CNBC)
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Quiz
What was the worst performing sector in the S&P 500 last week? (Scroll Down for Answer)
- Health Care
- Energy
- Technology
- Utilities
Answer:
3. Technology. One of only two negative sectors last week, technology struggled even after the move higher Friday. Technology is up nearly 13% for the year and is the 4th best performing sector in the S&P 500 this year.
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