This Week In The Markets

the financial news you need

Author

Al Atencio
October 04, 2024 • Estimated Reading Time: 6 minutes

Welcome to your weekly market wrap-up.

Grab a cup of coffee, get comfortable, and catch up on financial markets.

I’ve been doing the reading and scrolling, to bring you the most relevant updates.

end of week markets update

1) Iran and Israel have dominated headlines this week. 

The big question: will this derail financial markets? Not really.

The big exception: If the conflict escalates and affects oil supplies from Iran.

🚨Then were in deep trouble 🚨

A dramatic surge in oil prices would hit consumers and industries across the globe.

Source: Bloomberg

There is a historical link between recessions and oil price spikes:

2) Chinese stocks are having their best weekly run in decades 🚀🧧 💵 

Will it hold? For now it’s a rally for the history books.

3) Markets are hitting all-time highs across sectors and the globe—this bull market is everywhere.

From the usual suspects:

to the small stocks:

to the old school:

up north:

down south:

in the most forgotten places:

You get the idea…

4) US Economics indicators right now = In the sweet spot 🍭 

Source: Apollo Global Management

“Current economic conditions can be best described as “goldilocks.” Not too hot, and not too cold… The risk with cutting interest rates too much too quickly is that the economy becomes too hot again.”

Torsten Sløk - Apollo Chief Economist

On a similar note Larry Fink had this to say this week regarding the economy:

“I don’t see any landing”

Larry Fink - CEO, Blackrock

5) And lastly, as we enter the final stretch of the year...

Cool stat: Since 1950, whenever the S&P 500 is higher the first 8 out of 9 months of the year:

It has gone on to close the year higher - 8 out of 8 times this has occurred.

Why: Momentum.

“It’s reasonable to think, “well gee.. the S&P 500 is up 21% this year. Don’t you think some of the things you described above are already priced in? If that’s your attitude, then you probably have been fighting the market for a while now. Momentum is the most powerful force in investing and one that too many investors dismiss.”

Michael Batnick - Ritholtz Wealth Management

charts

Looking back, Q3 was spectacular for the S&P500. 

More and more companies across different sectors are contributing to the rally.

More breadth usually means a stronger bull market.

IPOs are still at rock-bottom levels in 2024.

Usually, a spike in IPOs signals that the economy is in its late stages with investors high on euphoria.

That signal isn’t flashing right now.

And finally, some parting wisdom

thanks for reading and have a great weekend,

Al Atencio 🦉 

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