The Long and Short of it, week ending 08 Oct 2021

Publication Type: Market Commentaries

A bumpy start last week with major U.S. stock indexes falling sharply and with the Nasdaq
Composite Index faring the worst by far. Increasing inflation and Fed-tapering concerns, spurred by
Friday’s PCE price index release, combined with a debt-ceiling overhang, pushed 10-year U.S.
Treasury rates higher and stock prices – especially tech stock prices – lower (Facebook’s
unprecedented outage Monday also affected the tech-heavy Nasdaq Composite Index). Stock
markets rebounded sharply Tuesday and then continued higher through Thursday buoyed by a
better-than-expected ISM services index release, falling weekly and continued jobless claims and
substantive progress on a short-term debt ceiling extension. Friday’s much weaker-than-expected
payroll report moved stock markets slightly lower while at the same time pulling the 10-year U.S.
Treasury rate above 1.6%. For the week, the S&P 500 Index rose 0.8% to 4,392.36, the Nasdaq
Composite Index increased 0.1% to 14,579.50, the Dow Jones Industrial Average gained 1.2% to
34,746.71, the 10-year U.S. Treasury rate jumped 15bp to 1.61% and the U.S. dollar (as measured by
the ICE U.S. Dollar index - DXY) was practically unchanged.

For More Detail read the following PDF.

The Long and Short of it, week ending 08 Oct 2021

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