This Weekly Financial Markets Update reviews the top market headlines: China’s Bold Bid to Boost Economy, Lower Energy Prices Dampen Inflation Gauge, Mixed Consumer Sentiment Readings
  • China's Shanghai Composite stock index jumped almost 13% last week
  • The Personal Consumer Expenditures Price Index rose at a 2.2% annual rate in August
  • The University of Michigan Consumer Sentiment Index rose to 70.1 in September

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Top Three Market Headlines

China's Bold Bid to Boost Economy: Policymakers in China last week introduced a series of stepped-up stimulus measures intended to boost the country's economy. Among the moves was an interest rate cut from the central bank, a reduction of mortgage rates, and promises of more government spending. The announcements energized markets, pushing the Shanghai Composite Index up nearly 13% and into positive territory on the year. This new urgency from Beijing follows a string of disappointing economic signs, including falling home and industrial goods prices, slowing retail sales, and weakening factory output.

Lower Energy Prices Dampen Inflation Gauge: Inflation subsided in August, according to the Personal Consumption Expenditures (PCE) Price Index, considered the Federal Reserve's preferred inflation gauge. The report, issued last week by The U.S. Bureau of Economic Analysis, signaled a 2.2% rise in prices across consumer goods and services versus last year, compared to a 2.5% pace in July. The reported moderation was driven by energy prices, which were down 5% from the prior year. Excluding the volatile food and energy categories, however, the "core" PCE rose at a 2.7% annual clip, unchanged from the prior month.

Mixed Consumer Sentiment Readings: The latest Index of Consumer Sentiment published by the University of Michigan rose to 70.1 for September, up 3.2 points from August. This was the highest reading in five months, though it remained well off the 10-year average of 84. The improved outlook contrasted with The Conference Board's Consumer Confidence Index, however. Also released last week, the latter index tumbled from 105.6 in August to 98.7 in September, a three-month low. All of the underlying index components decreased on the month, including consumers' assessments of current and future business and labor market conditions.

As of September 27, 2024 Week Quarter-To-Date Year-To-Date One-Year
MSCI All Country World 1.91% 6.74% 18.80% 32.57%
S&P 500 0.64% 5.43% 21.55% 36.22%
Russell 2000 -0.13% 8.96% 10.85% 26.92%
MSCI EAFE 3.75% 8.91% 14.73% 27.68%
MSCI Emerging Markets 6.21% 9.06% 17.23% 27.06%
FTSE NAREIT Equity -0.19% 15.26% 15.11% 35.41%
Bloomberg Commodity 2.24% 0.56% 5.73% -0.02%
Bloomberg U.S. Aggregate -0.01% 5.44% 4.69% 12.07%

U.S. Bureau of Economic Analysis 09/27/2024, WSJ 9/26/2024, University of Michigan 9/27/2024, The Conference Board 9/24/2024, Barron's 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.