Weekly Market Roundup | Week of September 11

Key Developments

• The S&P 500 declined 1.3% last week. Energy led all sectors, rising 1.4%. Industrials lagged, falling 2.9%.
• China’s ban of iPhones prompted headwinds for Apple and broad tech stocks.
• Interest rates and the US Dollar Index (DXY) were higher last week, while commodities and global equities saw losses, emphasizing risk-off trading action.
• The ISM Services Index was above expectations, reporting at 54.5 (estimate 52.5) as the services economy continues to show expansion in activity.
• WTI oil prices reached the highest level in 9 months, as the market reacts to the extension of production cuts by Saudi Arabia and Russia.
• Inflation data will be the key to watch this week, with CPI out on Wednesday and PPI Thursday.

This Week’s Economic Data

Chart of the Week

Oil Prices Continue Rally as Production Cuts Stoke Gains, but 2-Year Breakevens Aren’t Following

-WTI oil prices reached the highest level since November of 2022 last week, as concerns over tight supply dynamics continue to linger over the market.

-At the same time, 2-year breakeven rates, a proxy for short-term inflation expectations, have not moved higher with oil prices as they typically do.

-This is a potential signal that the move in oil is not catalyzed by any constructive shift in the demand dynamic, but that it is solely driven by the sustained production cuts.

Global Cross-Asset Performance Summary

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Year to Date

S&P 500 Sector Performance

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Year to Date

US Equity Market Style and Size Performance