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US markets (S&P 500 Index -0.8%) fell for the fourth straight day on the last day of August. Wall Street markets moved approximately 4.0% lower over August, after scrubbing gains made in the first half of the month.  Markets are now under no illusion that the US Federal Reserve will not waiver in its commitment to raising rates at its current pace. The Feds sentiment seemingly holds regardless of whether the US is entering an official recession or not.  Technology stocks bucked the overall trend and helped the markets from registering an even larger loss. Meta booked a 3.7% gain, but was beat by two Chinese-based companies, Pinduoduo and Baidu, climbing 7.2% and 4.6%, respectively.

US markets (S&P 500 Index -1.1%) fell for a third-day in a row as ‘good’ jobs data translated into bad news for stocks – as it gives the Fed added capacity to raise interest rates higher to combat inflation. US Jobs opening data showed 11.2m available vacancies, 800k stronger than expected, while US consumer confidence came in stronger than expected. Markets will also be watching key non-farm payrolls employment data out on Friday, with a strong print meaning more room for the Fed to lift rates and keep them higher for longer. All sectors ended in the session in the red, with energy being hardest hit as the price of oil slipped. European markets (Stoxx 600 Index, -0.7%) closed lower, erasing earlier gains, on deep recession fears induced by a spike in energy prices, coupled with a hawkish outlook from the ECB. Inflation data in Germany was high reaching a 40-year peak, in line with expectations rising +8.8% year on year.

US markets (S&P 500 Index -0.7%) started the week with a negative tone, as investors brace for a more hawkish Fed policy following Friday’s comments. Treasury yields continue to climb with the 2-year rate accelerating to 3.48%, reaching its highest level since 2007, well ahead of the 10-year US interest rate which rose to 3.11%. Most sectors traded lower, with tech and real estate stocks leading losses, while energy and utilities were the only two sectors in the green.

US markets (S&P 500 Index -3.4%) were sharply lower on Friday, after Fed chair Jerome Powell made it clear that rates will continue to rise to combat inflation – dampening hopes of possible easing in monetary policy. Powell reiterated his tough stance and the Fed’s goal to bring inflation back down to 2%. Not only reiterating that there would be room for further rate hikes over the near-term, but that rates will likely stay higher longer than anticipated. This saw all sectors in the red, with tech shares were hardest hit with the NASDAQ Index down -3.9%, followed by consumer discretionary and communication services. European markets (Stoxx 600 Index, -1.7%) also closed lower, as risk of a deep recession continues to rise in Europe as gas and electricity prices continue to skyrocket. 

US markets (S&P 500 Index +1.4%) rose strongly overnight on light trading, as market attention remains focused on Fed Chair Powell’s Jackson Hole address tonight. Expectations are that the Fed will be aggressive with monetary policy going forward, to bring down inflation to its 2% target. US second quarter GDP was revised up slightly indicating a fell -0.6% year on year, less than -0.9% that was expected, and coming in better than the steeper -1.6% contraction in the first quarter. On the flip side, jobless claims data came in stronger than expected suggesting the US economy is still in a strong position (particularly the employment market)  – giving the Fed extra capacity to continue its hawkish tilt. The session saw all sectors rise, with materials, communication and tech leading gains, as the NASDAQ index rose +1.7%. European markets (Stoxx 600 Index, +0.3%) closed higher, on a more mixed day of trade, with strong gains for oil and gas stocks offset by losses from retail stocks.

US markets (S&P 500 Index +0.3%) ended the overnight session up after starting in the red, ending a 3-day losing streak. Stock traders remained hesitant to make any huge bets ahead of Jerome Powell’s speech on Friday, which may provide clues on how hawkish the Federal Reserve will be in the face of mounting economic challenges. Most sectors were up slightly, with energy and real estate leading gains, while tech and healthcare remained mostly flat. European markets (Stoxx 600 Index, +0.2%) were also up as European gas prices rose another 8%, taking the Dutch  benchmark to a fresh record close. UK gas prices show similar moves. The dire European gas situation has been spilling over into other markets, with US gas prices continuing to trade near record highs. 

US markets (S&P 500 Index -0.2%) edged lower for a third day in a row as nervous investors await the Fed’s guidance on Friday in terms of the interest rate hiking track. There wasn’t much fresh news to drive markets, but weaker US data (services and housing) overnight got the market’s attention, causing some choppy trading conditions Most sectors were lower except for energy and materials. Supply issues continue to push commodity prices higher, as Saudi Arabia threatened to cut production. European markets (Stoxx 600 Index -0.5%) were lower after digesting higher oil prices and weaker economic data from the eurozone. Purchasing managers index (PMI) data out of eurozone contracted for the second month in a row.

US markets (S&P 500 Index -2.1%) fell sharply overnight, suffering the worse single day decline since June as markets prepared for a more hawkish monetary policy outlook from the Fed on Friday –  as more is still required to fight inflation.

US markets (S&P 500 Index -1.3%) fell on Friday, to end the week down -0.8% as investors became more cautious around the higher interest rate backdrop.