Redhawk Wealth Advisor's Market Commentary with Rick Keast for the week of November 6th, 2023
In this Redhawk Wealth Advisors General Market Update for November 6th, 2023, Rick Keast, President of Redhawk Wealth Advisors, provides an overview of recent market performance and economic data points. He highlights the following:
- The previous week saw significant gains in the U.S. stock market, with indices posting their largest weekly gains of the year and a strong rebound from recent declines. The NASDAQ increased by 6.6%, the S&P 500 by 5.9%, and the Dow by 5.1%.
- U.S. Treasury yields fell, with the 10-year Treasury bond yield dropping from 4.83% to 4.52%.
- Jobs growth showed signs of cooling, which might influence the Federal Reserve to be less aggressive with interest rate hikes. The U.S. economy added 150,000 new jobs in October, a decrease from September and the monthly average over the past year.
- The Federal Reserve kept interest rates steady, marking the longest period without an increase since rate hikes began in March 2022.
- Stock indexes fell for the third consecutive month in October, marking the first three-month losing streak since early 2020.
- A group of seven large tech companies significantly contributed to the S&P 500's positive year-to-date return as of October 31.
- U.S. small-cap stocks, as measured by the Russell 2000 index, outperformed large-cap stocks with nearly an 8% increase for the week.
- Market volatility decreased, with the CBOE Volatility Index dropping 30% to its lowest level in a month and a half.
Rick also discussed the importance of investing in companies with strong balance sheets, especially during recessionary fears, as these companies have outperformed those with weaker balance sheets. He touched upon the potential for market trends to change if the S&P 500 index breaks through resistance levels, and he concluded with a reminder of the importance of fundamentals during uncertain economic times.
