The Markets (as of market close November 4, 2022)
Despite a late-week rally, stocks closed lower last week. Investors continued to try to assess the plethora of mixed data and its impact on the economy. Inflation continued to rise, and the Federal Reserve hiked interest rates up another 75.0 basis points, yet the October job figures were above expectations — the result of which has been market volatility. For example, the S&P 500 has recorded five monthly moves of at least 7.0% either upward or downward. With the release of the consumer price index later this week, more volatility is likely. Nevertheless, each of the benchmark indexes listed here slid lower last week, led by the Nasdaq, which dropped nearly 6.0% as tech shares fell nearly 7.0%. Long-term bond prices also fell, pushing yields higher, with 10-year Treasury yields increasing 14.0 basis points. The dollar ended the week relatively flat, while gold prices advanced for the first time in a month. Crude oil prices finished at their highest price in a month, as the prospects of China’s relaxation of COVID restrictions likely will remove the lid on crude oil prices.