Equity Markets Closed Mostly Lower Last Week

Tech shares helped the NASDAQ close up last week. The remaining major benchmark indexes didn’t fare as well, with the S&P 500, Russell 2000 and Dow Jones Industrial Average all in negative territory. Renewed concerns about the Federal Reserve’s interest rate policy dampened investor appetite for risk. Bond prices also faded during the week, driving yields higher. Crude oil prices climbed higher as investors monitored ongoing tensions in the Middle East. Gold prices continued to advance and have risen over 33.0% from the beginning of the year.

Existing-Home Sales Fell in September

Existing-home sales decreased 1.0% in September and 3.5% from one year ago. The median existing-home sales price fell 2.4% in September to $404,500 but was 3.0% above the September 2023 price. The inventory of unsold existing homes, at a supply of 4.3 months, rose by 1.5% from the prior month. Sales of single-family homes edged lower by 0.6% in September and fell 2.3% from a year earlier. The median existing single-family home price was $409,000 in September, down from $419,000 in August but up from $397,400 in September 2023. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.44% as of Oct. 17. That’s up from 6.32% from one week ago but down from 7.63% one year ago.

Eye on the Week Ahead

There are several market-moving economic reports being released this week. Among those reports is the initial estimate of gross domestic product (GDP) for the third quarter. The second quarter GDP estimated that the economy grew at an annualized rate of 3.0%. The personal consumption expenditures price index, the preferred inflation indicator of the Federal Reserve, is released within the personal income and outlays report. August saw prices tick up 0.1%, while the annual rate of growth rose 2.2%. Lastly, the latest employment data for October will be released on Friday. September’s report revealed an unexpected 254,000 new jobs, a figure well above consensus estimates. It is likely that the September figure is adjusted downward.