Investment Week at a Glance
Stocks finished up last week. The Dow Jones Industrial Average was up 2.4%, the S&P 500 was up 3.4%, and the NASDAQ rose 4.9%. Foreign stocks (MSCI EAFE) were also up for the week, rising 2.3%. Bond prices were up for the week, with the 10-year U.S. Treasury yield ending the week at 4.66%. (Data source: Wall Street Journal)
Unemployment Rate Drops to 4.1% in July, Despite the Economy Losing 23,000 Jobs
On August 7th, the Bureau of Labor Statistics released the US jobs report for July. The data indicated that the economy unexpectedly lost 23,000 jobs, while the unemployment rate fell to 4.1%. This data indicates that workers are leaving the labor force entirely, and the labor market is showing signs of weakening despite the decrease in unemployment.
Precious Metal Prices Rise Because of Several Economic Factors
Last week, gold prices rose 6% while silver climbed over 9% as macroeconomic pressures drove metal prices higher. These gains were the best single-week returns for the two metals in over 7 months. Weak labor data for July lowered the chances of a Federal Reserve interest rate hike, reducing the opportunity cost of holding nonyielding assets. Additionally, central banks have continued buying gold to diversify against the dollar because of the rising US debt and geopolitical risks.
Airbnb Stock Up 33% Year to Date, And Over 50% In the Last Year.
Airbnb (ABNB), one of the largest companies in the hospitality industry, saw its stock price soar by over 17% on Friday as the company beat earnings expectations for the first time in three years. Additionally, the stock price has risen over 33% this year as the company continues to provide a positive outlook, citing resilient travel demand and increased internal efficiency from artificial intelligence. Airbnb is expected to release its next quarterly earnings report in November, and investors are anticipating big results based on the recent stock price increase (CNBC).
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Quiz
How far has the VIX fallen in the last month? (Scroll Down for Answer)
- 3%
- 5%
- 7%
- 9%
Answer:
3. 7%. The VIX, commonly known as the fear gauge, measures the expected 30-day volatility on the S&P 500 index. A declining VIX represents reduced investor anxiety, uncertainty, and more optimism. This investor optimism showed last week as major indices surged.
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