Back Up. Despite all that volatility over the past few days, the stock market put together a decent week.
The S&P 500 rose 0.5% on Friday, while the Dow Jones Industrial Average rose 479 points, or 0.9%. The Nasdaq Composite rose 0.5%.
The Dow rose 0.3% on the week to snap a three-week losing streak. The S&P 500 rose 1.2% to snap a two-week streak, while the Nasdaq rallied 2.1%.
My colleague Naomi Buchanan writes that the "rollercoaster of a week" for Wall Street came despite bond yields rising to multi-year highs. The yield on the 10-year Treasury note, for example, was up to 5.18%, its highest yield since 2007. Naomi writes:
Friday's equity moves were sparked by reports of potential progress in U.S.-Iran talks. Oil futures ended the week lower, while the Treasury market weakened with bond yields moving higher.
"In spite of much higher interest rates, in spite of a 10-year treasury yield at 5.2%, in spite of oil prices averaging closer to $90 plus a barrel here in the US ... I think the market can kind of continue to shrug that off as long as it can believe that it's transitory," says U.S. Bank's Rob Haworth.
Of course, this is far from the first time markets rallied into the weekend on hopes of an Iran deal.
With the S&P 500 and Nasdaq both within 1% of their highest levels on record, it will likely take more substantial signs of progress to get the market truly back in rally mode.
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This Weekend's Magazine
The Calendar
Next week brings two important data releases that could determine whether Treasury yields continue their ascent. The Bureau of Economic Analysis releases the personal consumption expenditures price index on Wednesday. Inflation has been running above the Federal Reserve's 2% target for more than five years, and there is little sign of the Fed hitting its bogey any time soon.
On Friday the Bureau of Labor Statistics releases the jobs report for September. Jobs growth has been solid this year and unemployment claims are well below historical averages. A steady labor market and perennially above-target inflation explains why traders are pricing in two more quarter-point interest rate hikes by next January.
Six S&P 500 index companies report results this week including CarMax on Tuesday, Micron Technology on Wednesday and Nike on Thursday.
-Dan Lam
What We're Reading Today
From Steak to Beans: Cleveland Fed Chief Warns Inflation Is Pushing Household Budgets to the Brink
Brookfield Has an Enviable Record of Boosting Profits. Its Stock Looks Cheap.
Microsoft Launches Copilot 'Super App' in Push to Monetize AI
Cava Stock Is Too Tasty to Pass Up
And this week's Barron's cover story: Innovation Is Driving a New Bull Market in Biotech. 16 Ways to Play It, From Our Roundtable Experts.
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