Day Traders Diary

8/19/24

The major averages closed higher to start the week as the S&P 500 and Nasdaq rose for their 8^th straight up session ahead of the Fed's Jackson Hole meetings at the end of the week. The Dow Jones Industrial Average rose 236 points, or 0.58%. The S&P 500 rose 54 points or 0.97% while the Nasdaq Composite rose 245 points.

August had a turbulent start after disappointing data fueled recession fears and bolstered concerns that the Federal Reserve was behind the curve on lowering interest rates. Those worries sparked a global sell-off, pushing the S&P 500 on Aug. 5 to record its worst day since 2022.

Fresh data last week seemed to subdue an anxious market, boosting hopes that the economy can attain a soft landing scenario. Encouraging retail sales and initial jobless claims, coupled with strong earnings from Walmart and tepid inflation data in the form of the PPI and the July consumer price index helped the averages recover.

Last week, the S&P 500 rallied nearly 4% for its best week since 2023, while the Nasdaq jumped more than 5% as tech stocks led the rebound.

Interest rates were quiet today with the 10-year Treasury at 3.867%. The 2-year Treasury yield is at 4.06%. Fed Chair Jerome Powell will speak at the central bank's symposium in Jackson Hole, Wyoming this Friday. Wednesday we will get the Fed's most recent meeting minutes.