The October reports showed continued economic growth with signs of potential slowing ahead. Hiring remained positive, as 150,000 jobs were added during the month. That said, the yield curve remained in red territory, and service sector and consumer confidence fell in October. This result could signal slower spending growth toward the end of the year.
Commonwealth
Looking Back at the Markets in October and Ahead to November 2023
Stock markets dropped for the third consecutive month in October, with financial markets getting hit by higher interest rates across the board. The U.S. indices were down in the low-single digits for the month, which left the Dow and the S&P 500 below their long-term trend lines. International markets also pulled back by roughly the same amount. Even fixed income was down. Financial markets were clearly in a risk-off mode.
Economic Release Snapshot: Hiring Slows in October
Each week, we break down the latest U.S. economic reports, including what the results mean for the overall health of the economy. Here, you will find how economists’ forecasts compare with actual results, key takeaways to consider, as well as a list of what’s on tap for the week ahead.
What Mattered This Week? Economy Slows, Markets Cheer
This was the week that the economy showed real signs of slowing down—and markets cheered! All right, it wasn’t quite that simple. But that captures pretty much what happened, so let’s look at the details.
Digesting the Fed
The Federal Open Market Committee (FOMC) met this week and voted unanimously to hold rates steady for the second consecutive meeting. This leaves its policy range at 5.25 percent to 5.5 percent. After a historic run where the committee increased that range by 5.25 percent over the course of 11 meetings, no change can certainly feel like a change. So, what are the driving forces behind the continued pause? Let’s look at some of the details the FOMC is keeping its eyes on, as well as what we should be paying attention to moving forward.
Market Thoughts for November 2023 [Video]
U.S. indices were down for the third consecutive month, with the Nasdaq doing the worst. International markets also pulled back, and fixed income was down. Despite the market performance, job growth remained healthy, consumer income and spending grew, and retail sales increased.