The S&P 500 index rose 0.6% last week amid data showing the Q2 economic growth rate held steady while inflation continued to cool last month. This marked the third consecutive weekly gain.
With just one trading session remaining in the month – today – the S&P 500 is on track to close out September in positive territory, which would mark its fifth monthly gain in a row. It is now up 1.6% for September and 20% for 2024.
Key economic reports last week included the second revision of Q2 gross domestic product as well as the August personal consumption expenditures price index, the Federal Reserve’s preferred inflation measure.
The GDP report showed the Q2 US economic growth rate held steady despite expectations for a slight downward revision. Real gross domestic product increased at a 3% annualized rate in the June-ended quarter, unchanged from a previously projected pace. The consensus was for a downward revision to a 2.9% reading in a survey compiled by Bloomberg.
The PCE index for August, meanwhile, rose by 0.1% in August, right on expectations and slowing the year-over-year rate to 2.2% from 2.5% in July. The price index rose by 0.2% month-over-month in July.
All but four sectors in the S&P 500 rose last week. The gainers were led by materials, up 3.4%, and consumer discretionary, up 1.8%. Other sectors up by at least 1% included industrials, technology, utilities and communication services.
On the downside, the health care sector shed 1.1%, followed by a 0.8% drop in energy, a 0.5% decline in financials and a 0.2% slip in real estate.
With the month and Q3 concluding at the end of the day today, investors will be keeping a close eye on the release of September employment data later in the week as we begin the final quarter of 2024.
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