14. Weekly Market Recap: Key Movements & Insights
🎯 'Buy the Dip' Brigade Gets Crushed: Is This the Reality Check Markets Needed?
S&P 500 Retreats Amid Inflation Concerns and Fed's Cautious Stance
In a week marked by a pullback from the previous week's exuberant rally, the S&P 500 cooled off, reflecting investor caution amid new economic data and Federal Reserve signals. The index fell over 2%, reversing some of the 4.6% gains it enjoyed on post-election optimism. This decline comes as inflation data released mid-week aligned with expectations, and Fed Chair Powell indicated a pause in interest rate cuts, dampening market enthusiasm.
The stock market's retreat was led by sectors such as non-energy minerals, process industries, and health technology, which lagged.
In contrast, consumer durables, technology services, and retail trade sectors showed resilience, buoying investor sentiment. The crypto market, however, continued its upward trajectory, with Bitcoin gaining an additional 3% this week, setting new all-time highs following a remarkable 17% surge the previous week.
Gold prices declined for the second consecutive week, dropping over 4% as the market adjusted from its recent highs. Oil prices also fell, influenced by forecasts of a significant surplus expected in 2025, which weighed on energy stocks.
Upcoming Key Events:
Investors are gearing up for a week filled with crucial earnings reports and economic data releases that could further influence market dynamics. The focus will be on software and overseas electric vehicle companies, among others, as they report their earnings.
Tuesday:
Earnings from Lowe's (LOW) and Xpeng (XPEV)
Housing Starts and Permits data
Wednesday:
Earnings from Palo Alto Networks (PANW), Snowflake (SNOW) and Nvidia (NVDA)
EIA petroleum status report
Thursday:
Earnings from Gap (GAP)
Jobless claims and existing home sales data
EIA natural gas report
Friday:
Consumer sentiment data
Index Insights: How Major Benchmarks Performed Last Week
Price>MA10: 🔴
Price>MA20: 🟢
MA10>MA20: 🟢
Market Trend: 🔴 (When Price and Moving Averages are all green, also the Market Trend will be green and positive)
Trend Signal: 🟢
Price>MA10: 🔴
Price>MA20: 🟢
MA10>MA20: 🟢
Market Trend: 🔴
Trend Signal: 🟢
Price>MA10: 🔴
Price>MA20: 🟢
MA10>MA20: 🟢
Market Trend: 🔴
Trend Signal: 🟢
Financial Sector Performance: Winners and Losers from Last Week
🎯 Market Pulse: Financials and Utilities Shine Amidst a Mixed Week
💰 Financials Lead the Charge
The Financial sector emerged as a standout performer, posting a solid +0.92% gain. With a robust RS(1W) of 4.98, financial institutions are capitalizing on favorable market conditions, signaling the potential for continued growth.
🔌 Utilities Show Resilience
Utilities demonstrated strength with a +1.03% increase, supported by an RS(1W) of 3.25. This sector's stability suggests a safe haven for investors seeking steady returns amidst market fluctuations.
🛢️ Energy Holds Steady
Energy saw a modest rise of +0.33%, maintaining a stable RS(1W) of 1.69. As global energy demands fluctuate, this sector remains a key player to watch.
📉 Healthcare Faces Challenges
Healthcare experienced a decline of -5.98%, with an RS(1W) of -6.22. This sector's performance indicates potential headwinds, a very bad week.
🔍 Sector Watch List: Mixed Performances
Consumer Cyclical: Down by -1.43%, RS(1W) at 6.59, indicating potential volatility.
Technology: Dropped by -3.09%, with an RS(1W) of 0.48, suggesting a temporary setback.
Basic Materials: Fell by -4.86%, RS(1W) at -1.86, highlighting sector-specific challenges.
🌟 Market Pulse: Luxury & Entertainment Sectors Shine in Weekly Performance
In a week that showcased the strength of consumer sectors, market performance reveals a fascinating shift towards luxury and entertainment segments. Let's break down the week's biggest movers!
🛍️ Consumer Sector's Commanding Performance Luxury Goods dominated the charts with a notable +5.99% surge, highlighting robust consumer spending and strong brand performance. This sector continues to demonstrate resilience in the market.
🎮 Entertainment & Leisure Rally Entertainment posted an impressive +5.07% gain, showing the continued strength of consumer discretionary spending and leisure activities.
🌾 Agricultural & Financial Momentum Farm Products showed remarkable strength at +3.26%, while Capital Markets maintained solid performance at +2.94%
✈️ Transportation & Consumer Services are resilient
Airlines soared ahead +2.88%
Tobacco companies advanced +2.52%
Department Stores showed resilience with +2.46%
📊 Financial Services & Energy Sectors Shine
Insurance - The life sector gained +2.22%
Oil & Gas Refining & Marketing added +2.19%
Electronic Gaming & Multimedia maintained momentum at +2.17%
Wall Street's Winners and Whiners: Top Stocks of the Week
🚀 Top Market Gainers: Bitcoin, Biotech, and Technology Lead the Surge
BTC Digital Ltd. (NASDAQ: BTCT) +945.36%
🌐 Bitcoin Surge: BTC Digital shares exploded higher after announcing a Bitcoin Miner Equipment Hosting Agreement, riding the wave of Bitcoin-related enthusiasm in the market.
Microvast Holdings Inc. (NYSE: MVST) +308.81%
📈 Strong Financials: Microvast stock soared following impressive Q3 2024 results, with record revenue up 26.6% year-over-year to $101.4 million and significant gross margin improvement from 22.3% to 33.2%.
Mercurity Fintech Holding Inc. (NASDAQ: MFH) +221.73%
💹 Crypto Momentum: Despite no specific news, MFH shares surged on Bitcoin-related enthusiasm in the fintech sector.
Pulmatrix Inc. (NASDAQ: PULM) +210.73%
🔬 Strategic Progress: Pulmatrix rallied after announcing successful transactions with MannKind Corporation, validating their iSPERSE™ technology, while pursuing strategic alternatives and maintaining a solid cash runway.
BTCS Inc. (NASDAQ: BTCS) +197.87%
📊 Strong Growth: BTCS shares jumped following impressive Q3 2024 results showing 134% quarterly year-over-year revenue growth, benefiting from the broader Bitcoin rally.
🔻 Biggest Decliners: Airlines, Biotech, and Retail Face Headwinds
Gaucho Group Holdings Inc. (NYSE: VINO) -66.16%
📉 Restructuring: Gaucho shares plummeted after the company initiated Chapter 11 reorganization to protect core assets.
Galaxy Payroll Group Ltd. (NASDAQ: GLXG) -65.53%
⚠️ Market Concerns: Galaxy Payroll stock crashed amid concerns over the company's IPO legitimacy.
Sow Good Inc. (NASDAQ: SOWG) -63.58%
📊 Revenue Decline: Sow Good shares fell after reporting decreased Q3 2024 revenue of $3.6 million, down from $5.0 million in 2023, due to weather-related shipping delays and increased promotional activity.
Spirit Airlines Inc. (NYSE: SAVE) -60.37%
✈️ Financial Turbulence: Spirit Airlines stock nosedived as the company explores debt restructuring amid bankruptcy concerns following collapsed merger talks with Frontier.
RAPT Therapeutics Inc. (NASDAQ: RAPT) -59.56%
💊 Clinical Setback: RAPT shares tumbled after discontinuing their zelnecirnon (RPT193) clinical program following FDA feedback.
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