Unify Financial Advisors Weekly Market Update
Markets were mixed last week as investors reacted to the Federal Reserve’s first interest-rate increase in three years, rising Treasury yields, and elevated energy prices. The Dow and S&P 500 declined 1.69% and 0.08%, respectively, while the Nasdaq gained 0.72% as technology stocks showed resilience. The 10-year Treasury yield climbed to approximately 5.00%, weighing on utilities, financials, real estate, materials, and industrials, while information technology and communication services outperformed. Crude oil remained near $100 per barrel.
Economic data showed continued strength in consumer spending, with August retail and food service sales rising 1.2% for the month and 6.0% from a year earlier. Industrial production was unchanged, while housing permits and starts declined 2.7% and 2.6%, respectively. Weekly unemployment claims fell by 10,000 to 196,000, while the national average price of regular gasoline increased to $4.319 per gallon.
Weekly Outlook
Following the Federal Reserve’s 0.25% rate increase, which brought its target range to 3.75%–4.00%, investors will continue assessing the outlook for interest rates and inflation. Fed projections indicate that most policymakers anticipate at least one additional 0.25% increase before year-end. This week has a relatively light economic calendar, with attention beginning to turn toward next week’s GDP report and August Personal Consumption Expenditures (PCE) price index.
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