The Long and Short of it, week ending 10 Sep 2021

Publication Type: Market Commentaries

All three major U.S. stock market indexes finished lower last week, falling over 1.5% and with the
Dow Jones Industrial Average performing the worst. Fallout from the previous week’s
disappointing non-farm payroll report and the ending of supplemental unemployment benefits (in
the remaining 25 states that still provide them) weighed on stock prices with increasing concerns of
slowing U.S. economic growth. Concerns of slowing growth have increased doubts whether the Fed
will begin tapering before year end while at the same time inflation continues to increase at
historically high levels (Friday’s PPI release showed producer prices increased the most in its
history). The confluence of increased expectations of weaker growth, surging inflation and a Fed
potentially unwilling or unable to tighten monetary policy in the near future has added to investor
uncertainty resulting in weaker stock markets. Concerns regarding congressional debt ceiling and
budget negotiations also weighed on markets. At week’s end, the S&P 500 Index fell 1.7% to
4,458.58, the Nasdaq Composite Index dropped 1.6% to 15,115.5, the Dow Jones Industrial Average
fell 2.2% to 34,607.46, the 10-year U.S. Treasury rate increased 1bps to 1.34% and the U.S. dollar
(as measured by the ICE U.S. Dollar index - DXY) strengthened 0.7% percent.

For More Detail read the following PDF.

The Long and Short of it, week ending 10 Sep 2021

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