WEEKLY MARKET RECAP – SEPTEMBER 13, 2024
Major U.S. stock indexes rallied, posting weekly gains of 3% to 6%, nearly matching the sharp losses from the previous week. Much of September’s volatility was driven by the information technology sector, which fell 7% at the start of the month before recovering with a 7% gain this week.
Stocks rose following a key Consumer Price Index (CPI) report, one of the last economic indicators before the U.S. Federal Reserve’s upcoming meeting, where an interest rate cut will be considered. The report revealed that consumer prices increased at an annual rate of 2.5% in August, down from July’s 2.9% and marking the lowest inflation rate since February 2021.
Yields on U.S. government bonds continued to decline amid growing expectations of a rate cut. The 10-year U.S. Treasury bond yield dropped to 3.66%, its lowest level since June 2023, down from a peak of 4.70% in April.
U.S. consumer sentiment also showed improvement, with the University of Michigan’s preliminary Consumer Sentiment Index reading rising to 69.0 in September, slightly up from 67.9 in August. Inflation expectations for the next year remained at their lowest point since December 2020.
Gold futures surged above $2,600 per ounce for the first time on Friday, continuing the precious metal’s recent upward trend. Gold, which was trading around $2,060 at the end of last year, first crossed the $2,500 mark on August 19.
At its two-day meeting concluding on Wednesday, the U.S. Federal Reserve is expected to announce its first interest-rate cut since early 2020. Fed Chair Jerome Powell reinforced these expectations in an August 23 speech, stating that “the time has come for policy to adjust.” However, by Friday, it remained unclear whether the Fed would implement a 0.25% or a 0.50% rate cut.
Major U.S. Economic Reports
| Report | Period | Actual | Previous |
| Wholesale inventories | July | 0.2% | 0.0% |
| Consumer credit | Aug. | $5.2B | |
| NFIB optimism index | Aug. | 91.2 | 93.7 |
| Consumer price index | Aug. | 0.2% | 0.2% |
| CPI year over year | 2.5% | 2.9% | |
| Core CPI | Aug. | 0.3% | 0.2% |
| Core CPI year over year | 3.2% | 3.2% | |
| Initial jobless claims | Sept. 7 | 230,000 | 228,000 |
| Producer price index | Aug. | 0.2% | 0.0% |
| Core PPI | Aug. | 0.3% | 0.3% |
| PPI year over year | 1.7% | 2.2% | |
| Core PPI year over year | 3.2% | 3.3% | |
| Monthly U.S. federal budget | Aug. | $89B | |
| Import price index | Aug. | -0.3% | 0.1% |
| Import price index minus fuel | Aug. | -0.1% | 0.1% |
| Consumer sentiment (prelim) | Sept. | 69.0 | 67.9 |
Closing Prices for the Week
| Contract | Close |
|---|---|
| Dow Jones Industrials Average | 41,393.78 |
| Nasdaq Composite | 17,683.98 |
| S&P 500 Index | 5,626.02 |
| CBOE Volatility Index | 16.56 |
| S&P GSCI | 519.09 |
| U.S. Dollar Index | 101.114 |
| 10-Year T-Note (Dec ’24) | 115-135 |
| Crude Oil WTI (Oct ’24) | 68.65 |
| Natural Gas (Oct ’24) | 2.305 |
| Gold (Dec ’24) | 2,610.7 |
| Silver (Dec ’24) | 31.074 |
| Corn (Dec ’24) | 413-2 |
| Wheat (Dec ’24) | 594-6 |
| Soybean (Nov ’24) | 1006-2 |
| Coffee (Dec ’24) | 259.45 |
| Sugar #11 (Mar ’25) | 19.41 |
| Cocoa (Dec ’24) | 7,695 |
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<p>The post Weekly Market Recap – September 13, 2024 first appeared on World Cup Trading Championships.</p>