Daily Market Commentary

October 26, 2023

Bonds & Stocks
Treasury yields fell as the latest economic reports did little to alter bets on a Federal Reserve pause next week. The euro remained lower after the European Central Bank kept rates unchanged. Two-year yields, which are more sensitive to imminent policy moves, dropped three basis points to 5.09%. Swap contracts project less than 50% odds for one more Fed hike in the current tightening cycle.

Economy
The US economy grew at the fastest pace in nearly two years last quarter, fueled by a surge in consumer spending. Gross domestic product accelerated to a 4.9% annualized rate, more than double the second-quarter pace, according to the government’s preliminary estimate Thursday. The economy’s main growth engine — personal spending — jumped 4%, also the most since 2021.

World
Israel’s military said it made a limited ground raid into northern Gaza with infantry and tanks, before withdrawing, as it kept up air strikes on the besieged territory. A series of Israeli incursions have previously sought to gather intelligence on Hamas and hostages. US President Joe Biden confirmed he’s asked Israel to delay a full ground invasion to help secure the release of more people held by Hamas, which the US and European Union designate a terrorist group. That came hours after Israeli Prime Minister Benjamin Netanyahu reiterated such an operation is being prepared.

The information represented herein was obtained from various sources, which we believe to be reliable. Neither the information presented nor opinions expressed constitutes an offer to buy or sell any security. And it is not intended to guide the investor on which securities to buy, or when to buy or sell.