Weekly Market Update

Weekly Financial Update for the Grand Protector

As we begin the month of September, the financial markets have been experiencing significant volatility.

Key Takeaways:

1. Historically Worst Trading Month: The worst trading month of the year has begun, with Wall Street bracing for a crucial jobs report that could shape expectations for interest-rate cuts.
2. Rate Cuts Likely: Traders are pricing in a 100% chance of a rate cut at the Federal Reserve's September meeting, with bets rising on a jumbo, 50-basis-point cut.
3. Weak Labor Market Data: The August jobs report showed that the US economy added just 22,000 jobs, far short of expectations for 75,000. This adds to evidence of a dramatically slowing US labor market.
4. Tech Stocks Boosted by Earnings and AI Trade: Tech stocks have seen significant gains this week, driven by strong earnings reports from companies like Apple and Google, as well as an upbeat outlook from Broadcom.

Market Performance:
• Dow Jones Industrial Average (^DJI): -0.5% for the week
• S&P 500 (^GSPC): -0.3% for the week
• Nasdaq Composite (^IXIC): -0.1% for the week

Economic Outlook:

The labor market data released this week has reinforced concerns about a slowing economy, which could lead to further interest-rate cuts by the Federal Reserve. The AI trade has also received a boost from positive developments in the field.