Unify Financial Advisors Weekly Market Update
Major indexes finished the week lower as a sell-off in tech and AI shares drove the declines. For the week, the Nasdaq fell 2.00%, the Dow slipped 0.85%, and the S&P 500 lost 0.57%. The sell-off hit hardest on Friday, when the Nasdaq dropped 2.9% in a single day, its largest one-day percentage decline since June 5. Disappointing results from Intel and Amazon amplified worries about AI companies’ massive spending. As investors pulled back from risk, demand for government bonds rose, and Treasury yields fell.
The Federal Open Market Committee held rates steady and described economic activity as expanding at a strong pace, though inflation remained elevated. Third-quarter GDP grew 3.4%, supported by AI investment and consumer spending. Unemployment claims edged lower to 194,000.
Weekly Outlook
The October jobs report is due this week. Payroll gains have slowed over the past several months, and expectations are that October job gains will be moderate. Tech earnings from Apple, AMD, Palantir, Super Micro, and Qualcomm will be front and center of the AI debate.
Please read the full Market Week report for details on last week’s market and economic activity.
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Regards,
David Bennett, CFA, CFP