Recent updates from various sectors reveal significant developments:
- Johnson & Johnson’s vaccine advances to final clinical trials: NYT
- New stimulus bill unlikely before the election: CNN
- Republicans push to confirm a Supreme Court nominee: WSJ
- Fauci informs Congress that a US vaccine may be available as early as April: CNBC
- California plans to end sales of gasoline-engine vehicles by 2035: NPR
- Trump declines to affirm a peaceful transfer of power following the election: BBC
- Eurozone growth stagnates in September: IHS Markit
- UK economic growth shows signs of slowing in September: IHS Markit
- Japan’s economy continues to face recession in September: IHS Markit
- US PMI survey data indicates ongoing economic rebound in September: IHS Markit
US Stocks Flirting With Fourth Weekly Decline: Although it’s only Wednesday, September 23, concerns about US equities are rising. The Vanguard Total US Stock Market (VTI) has decreased by 2.6% so far this week. Today’s steep drop has erased two days of modest gains, suggesting that VTI may be approaching its first series of four consecutive weekly declines in over a year.
Since the March coronavirus crash that disrupted global asset prices, nearly every segment of the markets has seen a robust rebound. This includes the US bond market, which has experienced a notable rally. Within the realm of fixed income, long-term corporate bonds have led this resurgence by a significant margin.
Recent legislative actions include:
- House passes bill to prevent a government shutdown: CBS
- Wisconsin declares a state of emergency due to increasing Covid-19 cases at colleges: ABC
- The rebound in coronavirus cases is impacting the global services sector: WSJ
- Eurozone growth shows minimal improvement in September, as per PMI data: IHS Markit
- The UK’s economic recovery faces challenges in September with slowing output: IHS Markit
- Japan’s economic downturn persists in September, according to PMI data: IHS Markit
- Richmond Fed Mfg Index reports growth uptick for September: RF
- US existing home sales surged to a 14-year high in August: CNBC
Forecasts for third-quarter GDP indicate a robust rebound; however, GDP alone cannot capture the full picture of the economy’s performance post-coronavirus recession. To gain deeper insights, monitoring a range of real-time indexes proves beneficial. By this metric, the current outlook remains complex and varied.
Expected announcements and events include:
- Trump is set to announce a Supreme Court nominee by Saturday: Reuters
- McConnell states that the Senate may conduct a Supreme Court vote before the election: BBG
- Fed Chair Powell remarks on the improving US economy, though warns of ‘highly uncertain’ recovery: BBG
- Obamacare may face challenges following Ginsburg’s passing: HP
- China’s recovery is anticipated to be a key factor in global GDP growth: CNBC
- China is reportedly compiling a blacklist of US companies to penalize tech firms: WSJ
- Diverging strategies on climate change by major oil companies in Europe versus the US: NYT
- Chicago Fed National Index indicates growth slowed in August but remains above average: AP
Last week, commodities continued their positive trend, marking a second consecutive weekly gain. Additionally, stocks in emerging markets and international real estate saw notable increases. Collectively, these sectors delivered strong returns compared to the broader major asset classes, based on various exchange-traded funds.
Republican senators are facing pressure to fill Ginsburg’s vacant seat on the Supreme Court: AP
Amy Barrett emerges as a leading candidate to succeed Ginsburg: Reuters
The US is on track to surpass 200,000 coronavirus-related deaths: Reuters
Global trade is rebounding quicker than anticipated: WSJ
The UN defies the White House by not supporting Iran sanctions: Politico
Russia announces it is ready to sell its coronavirus vaccine globally: WSJ
HSBC is charged in connection with a Ponzi scheme: BBC
China’s support for the global economy is expected to be limited: SCMP
Bank of America economists express skepticism about the imminence of higher inflation: II
The US Consumer Sentiment Index climbs to a six-month high in September: UoM
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Review via USA Today
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US Stocks Decline for a Third Consecutive Week: On September 18, US stocks closed lower, with the Vanguard Total US Stock Market (VTI) experiencing a slight decrease of two basis points. This minor setback marks the ETF’s first instance of three consecutive drops in 2020.
