PAS Weekly Commentary

Nasdaq Stands Out During Quiet Week

The stock market started September on a quiet note after an equally quiet finish to August. The S&P 500 added 0.6% for the week while the Nasdaq outperformed, gaining 1.6%. The Dow lagged throughout the week, shedding 0.2%.

The S&P 500 and Nasdaq recorded the bulk of this week's gains on Monday, inching to fresh record highs as the week went on.

The start of the new month brought the release of manufacturing and non-manufacturing surveys from major economies. Most of these surveys showed a deceleration in activity while China's Caixin manufacturing and non-manufacturing fell into contraction, prompting speculation about more easing. Meanwhile, manufacturing and non-manufacturing surveys from the U.S. remained in expansionary territory.

Friday's release of the Employment Situation report for August muddled the economic picture for the U.S., as nonfarm payrolls increased by just 235,000 while the consensus expected growth of 750,000. The headline miss was coupled with a 0.6% increase in average hourly earnings, which was well ahead of the 0.3% increase expected by the consensus.

Seven sectors ended the week in positive territory with gains ranging from 0.9% (technology) to 4.0% (real estate). On the downside, financials (-2.5%) and energy (-1.4%) finished at the bottom of the leaderboard while materials (-0.9%) and industrials (-0.4%) recorded slimmer losses.

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Past performance is not a guarantee of future results. Indices are unmanaged and one cannot invest directly in an index. Diversification does not guarantee investment returns and does not eliminate the risk of loss.

Data and rates used were indicative of market conditions as of the date shown and compiled by Opinions, estimates, forecasts, and statements of financial market trends are based on current market conditions and are subject to change without notice. References to specific securities, asset classes and financial markets are for illustrative purposes only and do not constitute a solicitation, offer, or recommendation to purchase or sell a security. S&P 500 Index is a market index generally considered representative of the stock market as a whole. The index focuses on the large-cap segment of the U.S. equities market. Each company’s security affects the index in proportion to its market value. NASDAQ Composite Index is a market value-weighted index that measures all NASDAQ domestic and non-U.S. based common stocks listed on the NASDAQ stock market. Dow Jones Industrial Average is a widely used indicator of the overall condition of the stock market, a price-weighted average of 30 actively traded blue chip stocks, primarily industrials, but also includes financial, leisure and other service-oriented firms. Russell 2000 Index measures the performance of the smallest 2,000 companies in the Russell 3000 Index of the 3,000 largest U.S. companies in terms of market capitalization. MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.

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2021-126388 (Exp. 12/21)