Mid-Week Market Minute 09.28.22

Market Updates

U.S. Stocks Largely Unchanged After Volatility Spike

U.S. stocks were largely unchanged for the week as volatility spiked amid global economic concerns. Investors continue to grapple with the impacts of higher interest rates against the backdrop of slowing economic growth.

In central bank news, we heard from several fed officials including St. Louis Fed president James Bullard, who cited inflation as a “serious problem” that the central bank must address. On the other hand, Chicago Fed President Charles Evans struck a more dovish tone, raising concerns about the pace of recent rate hikes.

Across the pond, the Bank of England announced on Wednesday they will temporarily purchase U.K government bonds in an attempt to halt the currency decline and stabilize markets. Recently, the British pound fell sharply alongside British government bonds as the government proposed large tax cuts and subsidies to help British families deal with soaring natural gas prices.

On the data front, durable goods declined in-line with expectations, while core capital goods orders increased more than expected. September’s reading on consumer confidence came in better than expected as a robust labor market coupled with lower gasoline prices in the U.S. helped buoy sentiment.

In housing, new home sales climbed 28.8% in August after declining 8.6% in July. MBA mortgage applications for the week ended Sept. 23 came in at -3.7%, below last week’s increase of 3.8%. Home prices showed a modest decline for the first time since 2012, as the FHFA House Price Index showed a decline of 0.6% in July. 

Source: GSAM, CNBC, JPMorgan

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