Weekly Market Commentary

The NASDAQ hit a record high last week, while other benchmarks ended mixed. Growth stocks outpaced value names, which is one of the factors lifting the tech-heavy NASDAQ into record territory. Strong economic data and corporate earnings were offset by inflation fears, ongoing supply chain constraints, and a return of COVID in Austria and Germany.

Stocks sold off from record highs last week, as investors digested inflation data recording the highest inflation levels in nearly thirty years. The Consumer Price Index (CPI) climbed 0.9% in October, much higher than consensus estimates for 0.6%. The increase brought the YOY % level to 6.2%, the highest inflation since December of 1990 during the Gulf War. This led the S&P 500 to end its longest winning streak since 2017.

Stocks posted impressive gains for the week thanks to a dovish Fed meeting, healthy economic data, and more strong earnings. Oil prices dipped on the possibility of releasing supply from the strategic reserve.

Stocks hit new highs last week during the busiest week of the third-quarter earnings season. Consumer Discretionary stocks were the biggest winners in the S&P 500, boosted by a jump on Tesla shares on news that Hertz was buying 100,000 EVs.

Large-cap and mid-cap indexes moved to record-high territory last week, boosted by a series of positive earnings surprises. Further reflective of strong investor sentiment, the VIX fell to its lowest level since the beginning of the pandemic, approaching 15.

Stocks built on previous week's gains helped by strong corporate earnings and positive economic news. There was evidence that supply pressures and inflation might be peaking as September Core CPI (ex food and energy) came in at 4%, inline with estimates.