This Weekly Financial Markets Update reviews the top market headlines: Upside Surprise to September Jobs Report, Services Sector Expands While Manufacturing Contracts, Federal Reserve Chair Powell Shares Outlook
  • The U.S. added 254,000 jobs in September
  • The ISM Services index registered 54.9% in September
  • The current federal funds rate target range is 4.75%-5.00%

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Top Three Market Headlines

Upside Surprise to September Jobs Report: The U.S. Department of Labor reported last week that the U.S economy added 254,000 jobs in September, more than economists' expectations and the highest monthly tally in six months. Additionally, the estimated number of additions over the prior two months was revised upward by 72,000. Sectors seeing the largest gains in September included restaurants, health care, government, and social assistance. Average hourly earnings were up 4.0% from a year ago, the fastest pace in four months, while the unemployment rate decreased to 4.1%, down marginally from 4.2% in August.

Services Sector Expands While Manufacturing Contracts: The Institute for Supply Management (ISM) reported last week that its index of business activity in the U.S. services sector registered 54.9% in September, exceeding the 50% threshold that distinguishes expansion of activity from contraction. This was a jump from 51.5% in August and the highest reading since February 2023. In contrast, the ISM's corresponding manufacturing activity index remained unchanged at 47.2% in September, marking the sixth consecutive month, and the 23rd month out of the last 24, that activity in the sector has contracted.

Federal Reserve Chair Powell Shares Outlook: In an address last week to the National Association for Business Economics, Federal Reserve Chair Jerome Powell characterized the current labor market as "solid," and noted that Fed officials have greater confidence that inflation "is on a sustainable path to 2%." The remarks came a few weeks after the Fed reduced the federal funds target rate by one-half of a percentage point to a range of 4.75%-5.00%. Mr. Powell also cautioned that the central bank is "not on any preset course" regarding future monetary policy decisions.

As of October 04, 2024 Week Quarter-To-Date Year-To-Date One-Year
MSCI All Country World -0.62% -0.50% 18.06% 33.23%
S&P 500 0.26% -0.17% 21.87% 36.89%
Russell 2000 -0.48% -0.76% 10.32% 29.86%
MSCI EAFE -3.73% -2.25% 10.45% 26.21%
MSCI Emerging Markets 0.42% 0.73% 17.72% 30.37%
FTSE NAREIT Equity -1.43% -2.13% 13.46% 35.07%
Bloomberg Commodity 1.90% 1.78% 7.74% 5.92%
Bloomberg U.S. Aggregate -1.24% -1.01% 3.40% 11.37%

US Bureau of Labor Statistics 10/4/2024. Federal Reserve Board 9/30/2024. Data from Morningstar Direct. Returns for periods greater than one year are annualized. Investment advisory, named and independent fiduciary services are offered through Gallagher Fiduciary Advisors, LLC, an SEC Registered Investment Adviser. Gallagher Fiduciary Advisors, LLC does not express an investment opinion regarding any specific commodity, sector or individual security. Unless otherwise expressly noted, the contents of this communication do not constitute securities or investment advice, nor should this communication be construed as an opinion regarding the appropriateness of any investment. Gallagher Fiduciary Advisors, LLC is a single-member, limited-liability company, with Gallagher Benefit Services, Inc. as its single member. Neither Arthur J. Gallagher & Co., Gallagher Fiduciary Advisors, LLC nor their affiliates provide accounting, legal or tax advice. The information provided cannot take into account all the various factors that may affect your particular situation, therefore you should consult your Gallagher Fiduciary Advisors consultant before acting upon any information or recommendation contained herein to discuss the suitability of the information/recommendation for your specific situation.