Last week was a tough week for financial markets. Stocks dropped as investors reacted to comments that the Federal Reserve intends to keep interest rates higher for longer - the S&P 500 dropped 2.9% and the Nasdaq was down 3.6%, their worst weekly performances since March. The Dow Jones lost 1.9%. Treasury Bonds, specifically the 2-Year and 10-Year, are at their highest interest rates in over 15 years. In addition, concerns grew around a government shutdown, which could slow down the economy further.
Economic reports from last week came back mostly negative:
•Homebuilder Sentiment - lower than expectation
•New Residential Construction - lower than expectation
•Existing Home Sales - lower than expectation
•Manufacturing (Philadelphia) - lower than expectation
•Consumer Sentiment - lower than expectation
•Jobless Claims - lower than expectation
This week, investors will look for guidance from economic reports like National Economic Activity, Manufacturing, Housing, Consumer Confidence & Sentiment, Personal Income and Jobless Claims.