On Thursday, unemployment claims for the last seven days were made public. During that time period, there were 194,000 requests for unemployment benefits. This was compared to an expected 200,000 such requests prior to the release.
On Friday, the University of Michigan released its inflation expectation and consumer sentiment reports. Inflation was expected to rise to 4.7 percent 12 months from now, which was in line with projections. Consumer sentiment came in at 48 compared to an expected 46.3 prior to the release.
Also on Friday, the Flash Manufacturing PMI and Flash Services PMI were released. Manufacturing came in at 56, indicating the sector is undergoing a relatively strong period of expansion. Services came in at 57.9, which means that the economy is strong and broadly diversified. This is often seen as a good sign for future growth prospects.
Oil prices went up sharply over the last five trading days. By Friday, West Texas Intermediate (WTI) had hit a high of $107 a barrel, which was just more than $8 higher than the weekly low of $98 set on Tuesday. Part of the increase had to do the latest developments in Iran. However, lower inventories in the United States may also be playing a role in higher prices.
Gold and silver prices both dropped significantly this week. Gold dropped below $4,000 an ounce on Friday for the first time since July. Silver dropped below $55 an ounce for the first time since July as investors digest the economic and geopolitical uncertainty.
The S&P 500 was down about 0.9 percent this week to close at 7,623. This was a loss of about 70 points for the index that seemed to have gained momentum again just a couple of weeks ago. The S&P 500 is down 1.1 percent over the last four weeks. Over the last five trading days, the market made a high of 7,768 on Wednesday and a low of 7,621 on Friday.
The Dow was up 0.61 percent this week to close at 52,215. This was a gain of 317 points for the index that tracks that 30 largest companies in the nation. Over the last four weeks, the index has appreciated about 0.73 percent. This week, it made a low of 51,51,915 at the open on Monday and a high of 52,884 on Thursday.
Finally, the Nasdaq was down 1.7 percent this week to close Friday’s trading at 25,955. The index is down 3.5 percent over the last four weeks. This week, it made a high of 26,760 on Wednesday before reversing and closing near its weekly low on Friday.
In international news, Canada announced Monday that inflation increased 0.1 percent in September and up 1.9 percent on an annualized basis. Great Britain announced Wednesday morning that inflation was up 3.5 percent on an annualized basis in September. Friday, the nation announced that retail sales dropped 0.4 percent in September.
Next week is sure to be another interesting one as the Fed will make its rate decision on Wednesday. It’s unclear whether the Fed will pause before the midterm or hike by 25 basis points to keep inflation in check. Canada, New Zealand and the Eurozone will also be making rate decisions next week along with Japan. The Core PCE Price Index and advance GDP figures from the third quarter are set to be released on Thursday.