ROBARE & JONES ON THE MARKETS
The S&P 500 extended its losing streak to a third week as Federal Reserve chairman Jerome Powell's firm commitment to restore price stability. The hangover from last Friday's speech at the Fed's Jackson Hole symposium overshadowed the August non-farm payroll report which, at +308,000, was the lowest monthly gain in 16 months, evidence that the Fed's restrictive policy is beginning to gain traction.
The benchmark index closed the week 3.3% lower at 3,924.26 from last week's close of 4,057.66 with all eleven sectors ending the week in the red.
With a loss of more than 3.3% this week, the energy sector wiped out nearly all of last week's 4% gain, and the technology sector was in negative territory for a third straight week, and was the worst performing sector, down 5%, thanks to a rout in the semiconductor industry with Nvidia (NVDA) limping into the close 16% lower on the week.
This past week's economic data was mostly bullish as consumer confidence improved to a 3-month high, region manufacturing measures beat expectations, and the Labor Department reported that there are two jobs available for every unemployed American.
Non-farm payrolls - the week's headline event - increased by 308,000 in August, slightly above 300,000 expectations. The unemployment rate inched up to 3.7%, though largely on the back of more individuals entering the workforce. Accordingly, the number did little to move the needle in either direction regarding a 50 or 75 basis point rate hike this month. There's little on the calendar for the shortened-holiday week which makes for some great TV time with football back in season!
Let's take a look at the markets from this past week!