Last week, the S&P 500 index fell 1.4%, capping the second straight weekly decline, as technology stocks dropped. The index closed out October with a 1% drop, only the second monthly decline this year. The index has gained 20% in 2024.
The index rose 0.4% on Friday as weaker-than-expected October nonfarm payrolls boosted expectations for the Federal Reserve to cut interest rates further. Total nonfarm payrolls last month climbed 12,000, trailing the 100,000 increase expected by analysts. The unemployment rate held at 4.1%, matching forecasts.
Friday’s gain pared declines earlier in the week.
All but two sectors posted weekly losses. Technology led the slide with a 3.3% drop, followed by a 3.1% decline in real estate and a 2.8% fall in utilities. Communication services rose 1.5%, and consumer discretionary edged up 0.5%.
Companies expected to report quarterly results this week include Vertex Pharmaceuticals (VRTX), Qualcomm (QCOM), Gilead Sciences (GILD), Duke Energy (DUK) and Airbnb (ABNB), among others
The economic calendar features reports on US productivity for Q3 as well as September factory orders and wholesale inventories. Investors will also focus on the outcome of a two-day Federal Open Market Committee meeting that concludes Thursday with a rate decision. The US presidential election is on Tuesday.
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