Fourth-Quarter Comeback?

What impact did the week have on the market?

• September Slump:

The S&P 500 retreated for the fourth week in a row, slipping to its lowest level in nearly four months. The index fell less than 1% for the week, outperforming the Dow, while the NASDAQ managed to post a fractional gain.

Add to that, with the notable exception of 2-year Treasuries, yields of most categories of government bonds extended their recent climb, with the 10-year Treasury yield rising above 4.50% for the first time since October 2007. Similarly, the 30-year yield eclipsed 4.70%, the highest since February 2011.??

Source: The Motley Fool

• Shutdown Anxiety:

Investors braced throughout the week for the prospect of a potential U.S. government shutdown as Congress struggled before a weekend deadline to find consensus on a supplemental spending plan. U.S. Treasury bonds exhibited elevated volatility, fueling another weekly increase for yields of long-term debt.?

Source: Seeking Alpha

• Inflation Moderation

The U.S. Federal Reserve’s preferred gauge for tracking inflation rose at the slowest monthly pace since November 2020. The Personal Consumption Expenditures Price Index rose at a 3.9% annual rate in August, excluding volatile food and energy prices. With those categories included, inflation was a more modest 3.5%.?

Source: CNN Business

Check out the Top 5 stocks in each industry:

What to expect for the markets next week?

• Jobs Ahead: A U.S. labor market update due out on Friday will show whether the recent trend of a jobs growth slowdown extended into September. In August, the economy generated 187,000 new jobs, well below the monthly average of 271,000 jobs over the past 12 months. August’s unemployment rate rose to 3.8% as more Americans joined the workforce.

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• More Earnings: We’ll get the latest reports on the jobs market next week, including the August Job Openings and Labor Turnover Survey (JOLTS), ADP’s National Employment Report tracking private sector payrolls, and the nonfarm payrolls report for September. Constellation Brands and Levi Strauss will report earnings next week.