Last week, bulls pushed the U.S. market near its 2023 peaks, with the S&P 500 and the Dow Jones 30 gaining 0.83% and 2.60%, respectively. Bonds also rallied as yields fell, with the U.S. Aggregate Bond Index gaining 2.04%.
After five consecutive winning weeks, the broader U.S. market started Monday about 4% below all-time highs amid abundant hope for interest rate cuts by mid-2024. Attention is now turning to crucial jobs data this week. The October Job Openings and Labor Turnover Survey (JOLTs) report is due on Tuesday, followed by the Employment Report on Friday. The unemployment rate is expected to hold steady at 3.9%. Average hourly earnings are anticipated to maintain a steady growth of 0.3% monthly, or 3.6% on an annualized basis, indicating wages are slightly outpacing current inflation and potentially driving consumer spending and economic growth.
The JP Morgan Chart of the Week highlights the gap between current 30-year mortgage rates and the average rate for existing mortgage holders, underscoring that higher mortgage rates have not impacted most consumers’ spending ability.
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Sincerely,
David L. Bennett, CFA, CFP
President & Financial Advisor | Unify Financial, LLC