About Us
Influential people and institutions across the globe rely on Goldman Sachs to support them in all they do. Learn more about us, our purpose and our commitment to clients.
Something went wrong, please try again later.
Market Movers
- All eyes on earnings. U.S. equities snapped a six-day losing streak to start the week as geopolitical tensions eased over the weekend. However, investor attention quickly shifted to earnings as 43% of the S&P 500’s market cap reported this week. Tech bellwethers surprised to both sides as investors digested new capital expense guidance. 10-year US Treasury yields finished higher +4.6 basis points at 4.67%. The S&P 500 finished the week +2.8% at 5110 and the Nasdaq was +4.2% on the week.
- Treasury sell-off. A sell-off in Treasuries deepened after inflation picked up, even as the US economy slowed to an almost two-year low. Chatter around stagflation started again, and US Treasury yields hit 2024 highs.
- Unshakeable. After the Bank of Japan kept rates unchanged, the market is now anticipating the possibility for yen intervention. In response, the yen continued its slide lower and broke the 157 level to 34-year lows. USDJPY ended the week -2.0% at 157.72.
Macro
- Sticky and strong. The Federal Reserve's preferred measure of inflation, the US core personal consumption expenditure (PCE), rose 0.3% from last month and 2.8% from a year ago, reinforcing concerns of continued price pressures. Inflation-adjusted consumer spending also saw the biggest gain this year at +0.5%. Quarterly gross domestic product (GDP) growth surprised to the downside, with Q1 annualized GDP seeing an increase of 1.6%, far below expectations of 2.5%.
- The first cut. 12-month eurozone inflation expectations decreased to 3% from 3.1%, notching in the lowest level since December 2021. Key economists continue to anticipate the European Central Bank’s (ECB) first cut in June, in line with ECB guidance, while the markets are pricing a first cut in the US for November. The head of Italy’s central bank Fabio Panetta said if the Fed keeps rates steady for longer than anticipated, or raises them, it would likely “… reinforce the case for an [ECB] rate cut.”
Micro
- Momentum boost. Despite underperformance last week and a variety of macro headwinds this week, high momentum names largely outperformed as earnings season is in full swing. A high momentum equity basket rose 6.4% on the week, pushing year-to-date performance to 20.5%.
- Sentiment boost. China-based internet companies listed in the US performed strongly this week among broader strength in China equities. Robust earnings from US tech giants and enthusiasm on AI investments pushed a basket of names up 12% on the week.
Checklist for next week
- Major economic events in the US include. MBA FOMC Rate Decision, Nonfarm Payrolls, Unemployment Rate, Average Hourly Earnings, Mortgage Applications, ADP Employment Change, JOLTS Job Openings, ISM Services.
- Major economic events around the world include. Eurozone CPI, Eurozone Unemployment Rate, Eurozone Consumer Confidence, Japan Jobless Rate, China Manufacturing PMI, France GDP, Canada GDP, Brazil Unemployment Rate.
This material has been prepared by the PWM Capital Markets team within the Private Wealth Management group and is not a product of Goldman Sachs Global Investment Research. This material is intended for educational / informational purposes only. Please see https://www.gsam.com/content/dam/pwm/docs/2018pwmweeklywrap_disclosure.pdf for important information and disclosures. Please contact us if you do not have access to this link.
No Distribution; No Offer or Solicitation: This material may not, without Goldman Sachs' prior written consent, be (i) copied, photocopied or duplicated in any form, by any means, or (ii) distributed to any person that is not an employee, officer, director, or authorized agent of the recipient. This material is not an offer or solicitation with respect to the purchase or sale of any security in any jurisdiction in which such offer or solicitation is not authorized or to any person to whom it would be unlawful to make such offer or solicitation.
© 2024 Goldman Sachs. All rights reserved.
Goldman Sachs & Co. LLC is registered with the Securities and Exchange Commission (“SEC”) as both a broker-dealer and an investment adviser and is a member of the Financial Industry Regulatory Authority (“FINRA”) and the Securities Investor Protection Corporation (“SIPC”).
© 2024 Goldman Sachs. All rights reserved.