This Weekly Financial Markets Update reviews the top market headlines: Gold Sets Another Record High, U.S. Retail Sales Strengthen in September, Nuclear Energy Stocks Glow
  • The price of gold surpassed $2,700 an ounce for the first time last week
  • Retail sales excluding automobiles and gasoline rose 0.7% in September
  • The Market Vectors Global Uranium and Nuclear Energy index rose nearly 9% last week

Top Three Market Headlines

Gold Sets Another Record High: The 2024 gold rally took another step higher last week, with the front-month futures contract for the metal hitting another all-time high and surpassing $2,700 an ounce for the first time. Year-to-date, gold is up more than 30%, making it one of the strongest performing assets thus far in 2024. Analysts attribute the recent push higher to geopolitical and economic uncertainty prompting investors to reposition their portfolios towards "safe haven" asset classes. Additionally, the recent Federal Reserve interest rate cut and expectations for future cuts may be contributing to the rally, as looser monetary policy has historically been supportive of precious metal values.

U.S. Retail Sales Strengthen in September: The U.S. Census Bureau reported last week that sales at U.S. retail and restaurant establishments rose by 0.4% in September over the prior month, an improvement from the tepid 0.1% pace of growth in August. Excluding sales of gasoline and automobiles, which tend to be volatile on a monthly basis, the sales rate was even better at +0.7%, the highest reading since June and the second highest level in 17 months. Areas of strength in September included health & personal care stores (+1.1%), clothing & clothing accessories (+1.5%), and food & beverage (+1.0%).

Nuclear Energy Stocks Glow: Nuclear energy stocks received a jolt last week after Amazon and Google each announced deals to secure power from nuclear facilities to meet soaring AI data center demands. The tech giants recently closed multiple investments and partnerships focused on small modular reactors (SMRs), an innovative nuclear technology offering enhanced scalability. The recent renewed interest in nuclear power has energized the stocks of companies involved in the industry: The Market Vectors Global Uranium and Nuclear Energy index has risen more than 30% this year after jumping nearly 9% last week alone.

As of October 18, 2024 Week Quarter-To-Date Year-To-Date One-Year
MSCI All Country World 0.48% 0.62% 19.39% 32.72%
S&P 500 0.87% 1.84% 24.33% 37.92%
Russell 2000 1.87% 2.10% 13.50% 33.59%
MSCI EAFE -0.38% -2.37% 10.31% 23.53%
MSCI Emerging Markets -0.37% -1.31% 15.33% 25.63%
FTSE NAREIT Equity 3.00% 0.44% 16.44% 36.78%
Bloomberg Commodity -2.46% -1.87% 3.87% -2.20%
Bloomberg U.S. Aggregate 0.05% -1.41% 2.98% 12.08%

U.S. Census Bureau 10/17/2024, Barron's 10/17/2024, Bloomberg 10/18/2024, FactSet. 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.