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Weekly Financial Market Update - October 4, 2019

Christopher LaPorta

October 7, 2019

The beginning of the fourth quarter arrived with a risk-off tone, as several major U.S. equity averages moved lower last week, led by the Dow Jones Industrial Average’s 0.9% decline. The blue chip index’s weekly loss erased its third quarter price gain of 1.2%, while the S&P 500 recorded its third consecutive weekly decline. Market sentiment shifted on Tuesday morning, as a report from ISM indicated U.S. manufacturing activity further slipped into contractionary territory in September.

The new export orders component of the index fell to its lowest level since March 2009. Cyclical areas of the equity market came under the most pressure this week, as the S&P 500’s materials, industrials, financial and energy sectors all fell by at least 2.2%. Taking their cue from the weak manufacturing data, bond markets staged a sharp reversal from their September trend of higher yields. The yield on the benchmark 10-year U.S. Treasury note fell from 1.75% early Tuesday morning to 1.53% by the end of last week.

Learn more about last week's developments in our Weekly Financial Market Update