Winthrop Partners Market and Economic Update 9-27-21

The Markets (as of market close September 24, 2021)

Investors rode a bumpy ride, opening last week lower only to rebound later but not enough to avoid a third consecutive weekly dip. Only the Nasdaq was able to avoid closing the week in the red, but barely. The Dow and the Global Dow fell nearly 1.0%, while the S&P 500 and the Russell 2000 declined more than 0.8%. Traders were able to overcome concerns early in the week of the possible financial collapse of a major Chinese property developer, only to learn last Friday that Chinese regulators will now consider crypto-related transactions illicit financial activity.

Wall Street suffered its worst day in nearly four months last Monday. Each of the benchmark indexes listed here fell, led by the Russell 2000 (-2.4%), followed by the Nasdaq (-2.2%), the Dow (-1.8%), the S&P 500 (-1.7%), and the Global Dow (-1.7%). Prices on 10-year Treasuries climbed, driving yields down by 4.5%. The dollar was mixed, while crude oil prices fell 1.6%. Each of the market sectors declined, with energy (-3.0%), consumer discretionary (-2.4%), and financials (-2.2%) falling the most. Investors were concerned about the impact on global financial markets from the possible collapse of Evergrande.

Stocks closed mixed last Tuesday, with the Nasdaq and Russell 2000 edging 0.2% higher, while the Dow and the S&P 500 ticked lower. Crude oil prices and Treasury yields rose, while the dollar was unchanged. Industrials and communication services were sectors that weighed down stocks, while energy and health care climbed higher.

Equities rebounded last Wednesday, as the Dow, the S&P 500, and the Nasdaq each rose by at least 1.0%. The Russell 2000 led the indexes, gaining 1.5%, while the Global Dow advanced 0.8%. Ten-year Treasury yields, the dollar, and crude oil prices each ticked higher. Among the market sectors, energy, financials, information technology, and consumer discretionary advanced. Investors may have been encouraged by potentially favorable developments involving Evergrande. Also, the Federal Open Market Committee was guardedly bullish on the growth of the economy, indicating that a tapering of its asset purchases may begin soon but that interest rates would remain at their current level for quite some time.

Wall Street continued to rally last Thursday. Investors were buoyed by the Fed’s stance on paring stimulus, the Food and Drug Administration’s authorization of a Pfizer booster vaccine for those age 65 and older, and an easing of concerns over the ripple effect of an Evergrande default. Each of the benchmark indexes listed here posted gains of at least 1.0%, with the Russell 2000 again leading the pack after advancing 1.5%. The dollar and crude oil prices fell, while yields on 10-year Treasuries ticked higher. Several of the market sectors also climbed higher, led by energy (3.4%) and financials (2.5%).

Friday ended the week with mixed results. The large caps of the Dow (1.0%) and the S&P 500 (1.0%) closed higher. The Global Dow also advanced 0.8%. The tech stocks of the Nasdaq dipped less than 0.1 percentage point, while the small caps of the Russell 2000 fell 0.5%. Ten-year Treasury yields and the dollar advanced, while crude oil prices edged lower. The market sectors also closed mixed last Friday. Energy, financials, and communication services climbed higher. Real estate, materials, health care, and utilities declined.

The national average retail price for regular gasoline was $3.184 per gallon on September 20, $0.019 per gallon more than the prior week’s price and $1.016 higher than a year ago. Gasoline production increased during the week ended September 17, averaging 9.6 million barrels per day. U.S. crude oil refinery inputs averaged 15.3 million barrels per day during the week ended September 17 — 1.0 million barrels per day more than the previous week’s average. Refineries operated at 87.5% of their operable capacity, up from the prior week’s level of 82.1%.  Click Here for full presentation: Winthrop Partners Market and Economic Update 9-27-21