Middle East

Dow Hits Record High Amid Strong Jobs Data, Fed Rate Cut Prospects Diminish | Daily Market Analysis Key events: Eurozone - ECB's Lane Speaks Eurozone - Eurogroup Meetings USA - FOMC Member Bowman Speaks USA - FOMC Member Kashkari Speaks  The Dow surged to fresh record highs on Friday, driven by a surprisingly strong jobs report that highlighted the resilience of the US economy and eased concerns about a potential recession.

Key events: USA - Average Hourly Earnings (MoM) (Sep) USA - Nonfarm Payrolls (Sep) USA - Unemployment Rate (Sep) The S&P 500 declined on Thursday as investors responded to signs of a softer labor market and ongoing geopolitical concerns in the Middle East, with a key monthly jobs report on the horizon. The Dow Jones Industrial Average dropped 184 points, or 0.4%, while the S&P 500 fell 0.2%, and the NASDAQ Composite slipped by 0.1%.

Key events: USA - Initial Jobless Claims USA - S&P Global Services PMI (Sep) USA - ISM Non-Manufacturing PMI (Sep) USA - ISM Non-Manufacturing Prices (Sep) On Wednesday, the Dow Jones eked out a slight gain, supported by stronger jobs data, though rising tensions in the Middle East tempered the upside. The Dow Jones Industrial Average increased by 39 points, or 0.1%, while the S&P 500 index remained flat, and the NASDAQ Composite added 0.1%.

Key events: China - Manufacturing PMI (Sep) UK - GDP (QoQ) (Q2) UK - GDP (YoY) (Q2) USA - Chicago PMI (Sep) USA - Fed Chair Powell Speaks On Friday, the Dow Jones Industrial Average reached record highs, closing with a gain of 137 points (0.3%) at 42,313.00. Energy stocks surged, and signs of faster-than-expected cooling inflation buoyed investor sentiment. In contrast, the S&P 500 dipped by 0.2%, and the Nasdaq Composite, heavily concentrated with tech stocks, fell 0.4%.

Key events: Eurozone - CPI (YoY) (Jul) USA - FOMC Member Bostic Speaks USA - Fed Vice Chair for Supervision Barr Speaks The S&P 500 advanced on Monday as concerns about a potential recession continued to diminish, setting the stage for a significant week with the Federal Reserve's release of July meeting minutes. Investors are also anticipating insights from Fed Chairman Jerome Powell at the Jackson Hole central bank symposium on Friday, which could offer clues on future monetary policy directions.

Key events: UK - Core Retail Sales (MoM) (Jul) USA - Building Permits (Jul) USA - Michigan Consumer Sentiment USA -Housing Starts (Jul) The S&P 500 extended its winning streak to six sessions on Thursday, as concerns over a potential economic slowdown eased after stronger-than-expected labor market and retail sales reports. The Dow Jones Industrial Average climbed by 555 points, or 1.4%, the S&P 500 increased by 1.6%, and the NASDAQ Composite saw a 2.3% rise. 

Key events: UK - Employment Change 3M/3M (MoM) (Jun)                 UK - Unemployment Rate (Jun) USA - PPI (MoM) (Jul) USA - FOMC Member Bostic Speaks The S&P 500 managed a slight gain on Monday as investors awaited crucial inflation data set to be released later this week. The S&P 500 rose by 0.03%, while the Dow Jones Industrial Average dropped 140 points, or 0.3%, and the NASDAQ Composite increased by 0.2%.

Key events: USA - Average Hourly Earnings (MoM) (Jul) USA - Nonfarm Payrolls (Jul) USA - Unemployment Rate (Jul)  The S&P 500 started August under significant pressure on Thursday as softer economic data rekindled recession concerns. The Dow Jones Industrial Average dropped 669 points or 1.6%, the S&P 500 fell 2.8%, and the NASDAQ Composite decreased 2.8%.

The Dow surged on Friday, marking its fourth consecutive weekly gain, buoyed by strong corporate earnings and data indicating cooling inflation, which fueled optimism for an upcoming interest rate cut. The Dow Jones Industrial Average climbed 654 points, or 1.6%. Both the S&P 500 and NASDAQ Composite rose 1.1%, though the latter two indexes recorded their first back-to-back weekly losses since April.

Key events: Eurozone - ECB's Lane Speaks Eurozone - ECB President Lagarde Speaks Eurozone - ECB's De Guindos Speaks USA - Member Williams Speaks USA - FOMC Member Harker Speaks On Friday, the Nasdaq achieved its fifth consecutive record high, driven by gains in Adobe and other technology stocks, while the S&P 500 and Dow ended the day slightly lower. Although the S&P 500 did not extend its four-day streak of record closing highs, it still recorded a weekly gain of over 1%.