AAM Weekly Market Wrap – August 29, 2022

Weekly Market Wrap: Stocks dropped for the second straight week as Fed Chair Powell indicated that the Fed will continue to aggressively raise rates until inflation is subdued.

For The Week

  • The S&P 500 lost 4.04% to 4,057.66
  • Oil rebounded 2.90% to $93.06
  • Gold slipped 0.63% to $1,749.70
  • The US dollar added 0.66% at $108.83 against other major world currencies.

2022 Year-To Date for the major indexes:

  • The S&P Index -14.87%
  • The Dow Jones Index -11.16%
  • The NASDAQ Index -22.39%
  • The Russell 2000 Small Cap Index -15.39%
  • EAFE International Index -20.30%
  • 10 Year Treasury Yield is 3.05%, higher for the week and higher for the year
  • 30 Year Treasury Yield is 3.21%, lower for the week and higher for the year
  • WTI Crude Oil Index +23.73%
  • Bloomberg Gold Index -4.45%
  • The Dollar Index +13.85% against other major world currencies

Monday the S&P 500 dropped 90 points on moderate volume with no major data reported.

Tuesday stocks slipped 9 points on moderate volume as new home sales fell and missed.

Wednesday the S&P 500 gained 12 points on moderate volume as mortgage applications fell, durable goods orders were flat and missed while pending home sales fell less than expected.

Thursday stocks rallied 58 points on moderate volume as jobless claims fell more than expected, continuing claims were lower and 2nd quarter GDP 2nd estimate beat expectations while falling 0.6%.

Friday the S&P 500 slumped 141 points on moderate volume as PCE prices fell more than expected, both personal income and personal spending rose less than expected while consumer sentiment rose and beat estimates.

Mortgage rates were sharply higher last week. The national averages as reported by Bankrate.com indicate a 15-year rate of 5.08% and a 30-year rate of 5.93%. These rates are as of 8/29/2022 and may include points.

What to watch for on the economic calendar this week:

                                                                                                 
Monday – No major data

Tuesday – Consumer Confidence / FHA and Shiller Home Prices

Wednesday – Mortgage Applications / Midwest Manufacturing / ADP Jobs

Thursday – Jobless Claims / ISM Manufacturing / Construction Spending / Worker Productivity and Unit Labor Costs

Friday – August Jobs / Factory Orders

Ronald J. VanSurksum, CFP®
Advanced Asset Management, LLC

August 29, 2022

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