Economy
- U.S. equities retreated during the week ending September 2, registering three consecutive weeks of losses. Stocks have come under pressure in recent weeks due to comments from members of the Federal Reserve signaling the aggressive interest-rate hike path is here to stay. The central bank intends to continue raising rates until uncomfortably-high inflation is extinguished.
- The August employment report showed that the U.S. economy added 315,000 jobs during the month, recording 20 consecutive months of job growth. Rising wages, plentiful job opportunities, and receding pandemic effects led to a strong uptick in the number of job-seekers. Employment growth was broad-based across sectors and reaffirmed the Federal Reserve’s aggressive interest-rate hike plans.
- The number of U.S. job openings (a measure of labor demand) widened from 11.04 million in June to 11.23 million in July, according to the Department of Labor. The quits rate—which measures employees who leave jobs of their own accord and generally widens as the economy improves—continued to hover near historic highs during the month, signaling worker confidence in finding new jobs.
Stocks
- Global equities closed lower for the week. Emerging markets fared better than developed markets.
- U.S. equities were in negative territory. Utilities and telecommunications were the top performers, while information technology and materials lagged. Value stocks led growth stocks and large caps beat small caps.
Bonds
- The 10-year Treasury bond yield increased to 3.20% during the week.
- Global bond markets were in negative territory this week.
- Global government bonds led, followed by global corporate bonds and high-yield bonds.
