Weekly Market Update: August 5, 2024
08/05/24
Soft Economic Data Renews Fears of a Recession as Fed Cut Nears
Those wanting an assured path to lower rates had their wishes all but granted following last week’s soft economic data. However, investors should be careful what they wish for, as that assurance came as a consequence of renewed recessionary fears given the soft data.
Risk assets came under significant pressure to end the week as investors fled to safety. The S&P 500 declined 2%, the Nasdaq 100 declined 3% and the Russell 2000 declined 5% for the week as a dovish midweek press conference from Fed Chairman Jerome Powell was overshadowed by soft economic data, disappointing earnings, and geopolitical tensions. The 10-year treasury yield ended the week at 3.79%, the lowest close in more than a year.
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