PAS Weekly Commentary

Data-heavy Week Ends with Solid Gains

It was a somewhat choppy week for stocks.

The major indices exhibited up and down action, ultimately rallying on Friday. The S&P 500 and Dow Jones

Industrial Average set record highs. The market placed geopolitical worries, along with concerns about Hurricanes Milton and Helene, on the back burner and focused on economic releases and Fed policy instead.

The September Consumer Price Index report was hotter-than-expected at the headline (actual 0.2%; expected 0.1%) and core (actual 0.3%; expected 0.2%) level. The year-over-year growth rate of core CPI increased to 3.3% from 3.2% in August and the growth rate of headline CPI slowed to 2.4% from 2.5% in August.

Some positive news from the report was that the shelter component, which has been the biggest driver of core inflation, saw its smallest increase (+0.2%) since June. Investors also received weekly jobless claims, which totaled 258,000 versus last week's count of 225,000.

Other data included the September Producer Price Index and preliminary consumer sentiment data from October, which also supported the idea that the Fed will continue cutting rates.

The market didn't react much to the minutes for the September 17–18 FOMC meeting, which didn't contain any surprises. The minutes showed that almost all participants saw upside risks to the inflation outlook as having diminished, while downside risks to employment were seen as having increased.

By the end of the week, market participants were digesting some earnings results from influential names in the financial space. JPMorgan Chase (JPM), Wells Fargo (WFC), and BlackRock (BLK) all received positive responses to their earnings results.

  • Nasdaq Composite: +1.1% for the week / +22.2% YTD
  • S&P 500: +1.1% for the week / +21.9% YTD
  • Dow Jones Industrial Average: +1.2% for the week / +13.7% YTD
  • S&P Midcap 400: +1.1% for the week / +13.4% YTD
  • Russell 2000: +1.0% for the week / +10.2% YTD

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Past performance is not a guarantee of future results. Indices are unmanaged and one cannot invest directly in an index. Diversification does not guarantee investment returns and does not eliminate the risk of loss.

Data and rates used were indicative of market conditions as of the date shown and compiled by Briefing.com. Opinions, estimates, forecasts, and statements of financial market trends are based on current market conditions and are subject to change without notice. References to specific securities, asset classes and financial markets are for illustrative purposes only and do not constitute a solicitation, offer, or recommendation to purchase or sell a security. S&P 500 Index is a market index generally considered representative of the stock market as a whole. The index focuses on the large-cap segment of the U.S. equities market. Each company’s security affects the index in proportion to its market value. NASDAQ Composite Index is a market value-weighted index that measures all NASDAQ domestic and non-U.S. based common stocks listed on the NASDAQ stock market. Dow Jones Industrial Average is a widely used indicator of the overall condition of the stock market, a price-weighted average of 30 actively traded blue chip stocks, primarily industrials, but also includes financial, leisure and other service-oriented firms. Russell 2000 Index measures the performance of the smallest 2,000 companies in the Russell 3000 Index of the 3,000 largest U.S. companies in terms of market capitalization. MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.

Park Avenue Securities LLC (PAS) is a wholly owned subsidiary of The Guardian Life Insurance Company of America (Guardian). PAS is a registered broker/dealer offering competitive investment products, as well as a registered investment advisor offering financial planning and investment advisory services. PAS is a member of FINRA and SIPC.

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6974283.7 (Exp. 01/26)

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