Market Roundup: Week Ends Slightly Down After Mixed Reactions to Fed’s Decision on Interest Rates

Economy/Stock Market

The week began on a down note with Energy stocks leading the decline alongside a dip in crude oil prices; however, the slip was reversed Tuesday, as Energy stocks rallied ahead of the Federal Open Market Committee meeting. In other economic news, U.S. retail sales ticked up 0.2% in August from a 0.7% gain in July. Discounting cars and gas, sales climbed 0.4%. The rally continued Wednesday as crude oil experienced strong gains. The Consumer Price Index showed inflation retreated in August with a 0.1% dip in headline inflation versus expectations of no change. Energy prices slipped 2% last month, while food prices edged up 0.2%. Thursday’s big news came by way of the highly anticipated comments from the Federal Open Market Committee meeting. The Federal Reserve kept its interest rate unchanged. Stocks retreated after Fed Chair Janet Yellen said that global developments overshadowed signs of strength in America. Additionally, housing starts fell by 3% to 1.13 million units in August, missing expectations of a lesser dip to 1.16 million. Friday’s down market pushed the week into the red zone with the Materials and Telecommunications sectors leading the decline.

Market Roundup: Markets Finish the Week with Strong Gains

Economy/Stock Market

The holiday-shortened week ended with the three major indices all closing above 2%. Tuesday stocks rallied for their biggest one-day gain in two weeks. The surge was the largest percentage and point gain since Aug. 26, when stocks roared back from a selloff caused by unease about slowing growth in China, the world’s second-biggest economy. Tuesday’s gains were knocked back by Wednesday’s decline. The Dow Jones Industrial Average declined 1.4%, despite rising nearly 172 points earlier in the day, following sharp gains in Asia and Europe after China’s finance ministry signaled that fiscal stimulus was on the way. Thursday’s action pushed nine of the ten S&P 500 sectors into positive territory with only Utilities lagging. Indices closed in the green zone on Friday, with Technology and Healthcare leading the day. The Producer Price Index held up better than expected in August as it was unchanged. Additionally, the University of Michigan consumer confidence index for September lost 6.2 points to 85.7. The September reading is well below the consensus estimate of 91.5 and is the third consecutive monthly decline, putting it at its lowest this year. Meanwhile, crude oil shed $1.29 to settle at $44.63 a barrel.