U.S. stocks and bonds ended their two-week losing streak with modest gains last week.
U.S. stocks and Treasury bonds lost ground for the second straight week as it looks more likely the Federal Reserve will in fact raise interest rates before the end of the year.
Last Friday’s slightly weaker than expected September jobs report was probably not strong enough to convince the Federal Reserve to raise interest rates at its next meeting in early November but maybe just good enough to warrant doing so in December.
A rebound in financial stocks on Friday pushed the three major U.S. equity indexes modestly into the green for the last week of the third quarter.
Despite a down day on Friday, global stocks and bonds rose last week, happy to have central bank announcements from the U.S. and Japan out of the way.
U.S. stocks rebounded last week after suffering one of their worst performances of the year the prior week, as fears receded that the Federal Reserve would raise interest rates at its monetary policy meeting this week.
Renewed fears that the Federal Reserve may be getting closer to tightening monetary policy and raising interest rates sent stock prices down sharply last Friday, with the major U.S. averages suffering their biggest weekly losses since the middle of January.