Investment Week at a Glance
Stocks finished mixed last week. The Dow Jones Industrial Average was down 2.0%, the S&P 500 rose 0.5%, and the NASDAQ was up 1.9%. Foreign stocks (MSCI EAFE) were also down 1.6% for the week. Bond prices were down for the week, with the 10-year U.S. Treasury yield ending the week at 4.99%. (Data source: Wall Street Journal)
Federal Reserve Raises Interest Rates for First Time in Three Years.
On Wednesday, September 16th, Federal Reserve Chairman Kevin Warsh announced that the central bank of the United States would raise the federal funds rate by 25 basis points. Warsh stated that policymakers at the Fed believe inflation is too high and that the central bank is committed to providing more price stability in the American economy. Major US equity markets dropped around 1% after the news. However, markets quickly recovered the following trading day, posting their best day in September so far.
August Retail Sales Data Much Stronger Than Expected
Last week, the U.S. Census Bureau released preliminary data for US retail sales for the month of August, and they came in much higher than expected after a slow month in July where sales actually declined by 0.5%. Sales rose by 1.2% in August and totaled over $773 billion, beating economists’ expectations by 0.5%. Although inflation is still impacting consumers, spending remains strong, and it appears that, thus far, consumers have not significantly adjusted their spending habits.
Applied Materials Stock Up 65% Year to Date, 120% in the Last Year.
Applied Materials (AMAT), a major player in the semiconductor equipment industry, has seen its stock price surge 120% over the last 12 months, as AI spending continues to benefit its business. The company reported a record $9.1 billion in revenue in its most recent quarter, accompanied by a strong outlook provided by the management team (AMAT Investor Relations). The company maintains high profit margins of around 30% and is set to report this quarter’s earnings on November 12th. Analysts expect to see another record-setting quarter for the company (CNBC).
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Quiz
What has the KOSPI (Korean Index) returned so far this year? (Scroll Down for Answer)
- 30%
- 40%
- 50%
- 60%
Answer:
4. 60%. The Korean stock market is one of the world’s top performers this year and has returned around 60% so far in 2026, despite experiencing significant volatility. The index returns are being driven largely by the performance of technology companies such as Samsung. The MGO portfolios have significant international exposure, with Korean equities making up a notable portion of those international holdings.
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