Weekly Market Review

Maybe all markets needed was turning the calendar over to November! Stocks and bonds remained highly correlated during a tough three-month stretch, which saw notable declines in both areas. The S&P 500 experienced a 10% correction from the July highs, as the rapid increase in long-term bond yields caused investors to reprice stocks. Then came last week, where the Fed held rates steady, and the October jobs report was perhaps the weakest we have seen all year. This caused bond yields to decline from the highs and stocks to rally. We are hopeful that stocks will continue to rally into year-end as investors price in the likelihood that the Fed has completed this leg of the hiking cycle. Where we go from there remains to be seen though, as much will rely on the data and an uncertain economic outlook.