Market Minute by FS Investments

U.S. equities reached a new high with the S&P 500 peaking at a 4.5% price-to-earnings ratio, while tech stocks outperformed as interest rates fell. In fixed income, short-term interest rates dropped amid mixed economic data, with the 10-year treasury yield remaining stable and the 2-year yield hitting a six-week low. Oil prices dipped due to a tepid U.S. jobs report, and Bitcoin crossed the $100,000 mark for the first time. Economic data reflected mixed results with improved manufacturing indexes but a higher unemployment rate, indicating labor market normalization.

A weekly recap of equities, fixed income, commodities, and macroeconomic analysis from the FS Investments research team.
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US stocks ended the week modestly higher with real estate, utilities, and consumer durables leading, despite a steep decline in MSML. Fixed income yields remained steady, though data continued to prompt sell-offs, with the 10-year yield spiking due to strong retail sales data. Commodities saw a drop in crude prices by 9% amidst concerns of oversupply, while gold reached a record high of $2,700 an ounce. The economic overview highlighted stronger-than-expected retail sales and a boost in GDP estimates, although industrial production slightly declined due to disruptions from natural disasters.

A weekly recap of equities, fixed income, commodities, and macroeconomic analysis from the FS Investments research team.
To read the full market minute or to sign up for the weekly email, with charts and data, go to https://fsinvestments.com/marketminute

A weekly recap of equities, fixed income, commodities, and macroeconomic analysis from the FS Investments research team.
To read the full market minute or to sign up for the weekly email, with charts and data, go to https://fsinvestments.com/marketminute

In U.S. equities, initial post-election gains were partly reversed due to a stronger dollar and higher interest rates, resulting in declines for the S&P and Nasdaq. The bond market reflected concerns over wider deficits, with the 10-year yield nearing 4.5% and the Fed showing no rush for rate cuts. The dollar surged, especially against the Euro, while oil prices fell amid bearish outlooks, and natural gas prices rose. Retail sales were mixed, with a notable contribution from auto sales, and jobless claims remained low, indicating a robust labor market.

A weekly recap of equities, fixed income, commodities, and macroeconomic analysis from the FS Investments research team.
To read the full market minute or to sign up for the weekly email, with charts and data, go to https://fsinvestments.com/marketminute