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Mid-Week Market Minute 8.21.24

Mid-Week Market Minute 8.21.24

August 21, 2024 Market Updates

Stock Rally Pauses; Earnings Insights

The recent rally in global stocks took a pause on Tuesday, after closing higher in the previous eight trading sessions. Following a sharp sell-off to start the month of August, the S&P 500 has rallied more than 8% since Aug. 5. International stocks have been strong as well, with the MSCI EAFE higher by more than 9% over that same period, also benefitting from a weaker U.S. dollar.

In an encouraging sign for the U.S. consumer, shares of Target moved higher on Wednesday after topping expectations for second-quarter earnings. This was consistent with results from Wal-Mart last week, who experienced a strong first half of the year as well. As two of the largest retailers in the U.S., both companies can provide valuable insights into the health of the consumer. While neither management team expects to see a recession in the second half of this year, both remained cautiously optimistic on the remainder of the year.

Looking ahead, investors will turn their attention to minutes from the Federal Reserve’s July policy meeting that are due Wednesday afternoon. Monetary policy remains at the forefront for the markets, which are currently pricing in four 25 bps rate cuts between now and the end of the year. In addition to the Fed’s minutes, investors will pay close attention to Fed Chair Jerome Powell’s speech on Friday at the central bank’s annual symposium in Jackson Hole, Wyoming. In the meantime, interest rates continued to drift lower through the first half of this week, with the yield on the 2-year and 10-year Treasury notes trading around 3.98% and 3.8%, respectively, mid-week.

Source: GSAM, CNBC, JPMorgan, FactSet

This communication is for informational purposes only. It is not intended as investment advice or an offer or solicitation for the purchase or sale of any financial instrument.

Indices are unmanaged, represent past performance, do not incur fees or expenses, and cannot be invested into directly. Past performance is no guarantee of future results.