The S&P 500 remained relatively flat for the week, concluding August with a 2.72% gain, while energy and technology sectors continued to lead year-to-date performance. Bond yields, specifically the 10-year and 2-year, are testing 24-month highs, reflecting ongoing market sensitivity to inflation and potential Federal Reserve policy shifts. Recent labor market data presents a complex picture: while job openings softened slightly, August payrolls exceeded expectations with 162,000 new jobs and significant upward revisions to previous months. Wage growth remains stable at 3.1% year-over-year, aligning with pre-pandemic trends. Market participants are now pivoting toward upcoming CPI and PPI releases to gauge the likelihood of a September rate hike, as current interest rate probabilities remain a near coin-flip between holding and tightening.
Sign in to continue reading, translating and more.
Open full episode in Podwise