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  • Writer's pictureCommercial Awareness

Top 5 Things to Look out for in the Stock Market this Week

Updated: Oct 24, 2023

By Aneira Pereira

This article encompasses the 5 major events and trends to keep in mind while approaching the stock market this week including smartphone battles, increasing interest rates of bonds, Elon musk’s SEC battle and Biden waiving off student loans.

1. Negative market trends arise from the US Job report that news outlets are calling a ‘stunner.’

The job report accounted an addition of 336 thousand new jobs in the labor market highlighting a concern that the market is not cooling as fast as the Federal Reserve expected it to in its fight to curb inflation. Nonfarm payroll additions were nearly doubles and wages are projected to rise 0.3% over the last month and 4.3% over the last year, however, the unemployment rates remain unchanged at 3.8%. Following the release of the report, the stocks have fallen especially the major indices: Dow Jones was down by 0.3%, S&P 500 lost 0.4% and NASDAQ led the fall dropping by 0.5%. Although, this could be perceived as a negative, now’s as good a time as any to stock up on index shares and hold until the market cools down.

2. UK long-term borrowing costs are at a 25 year high.

Post the US jobs report, UK bond selloffs have sent UK long-term borrowing costs to a 25 year high! The yield on 30-year bonds have hit a staggering 5.1%, which is even above the level during the Lizz Truss’ mini-budget economic crises. There are growing concerns that central banks will keep interest rates at high levels through 2024.

3. Battle between Elon Musk and the SEC is in full swing.

The SEC is investigating a potential securities fraud related to Elon Musk’s $44 billion purchase of Twitter, rebranded as X, however, he ignored a subpoena last month to testify at the agency’s probe. So the SEC has sued him to force his testimony. This leaves the future of twitter and the public sentiment of the CEO’s company’s such as tesla and spaceX in murky waters.

4. Battle of the Superior smartphone: Apple or Google?

Google unveiled two new pixel phones within 2 weeks of apple releasing iPhone 15, trying to take the smartphone market share away from Apple. The gold phons have new AI-powered editing tools and the best take tool to allow users to pick their best takes from a series of pictures, while apple has released a software update to fix an overheating issue that users seem to have with the new iPhone.

5. Student loans being waived off.

President Joe Biden has cancelled $9 Billion of student loan debt this week, benefitting over 125 thousand Americans! He decided to do so after the Supreme Court canceled his plan on reducing $20,000 in student loan debt for tens of millions of Americans, meaning, people would’ve had to start repaying their student loan beginning Oct. 1 for the first time in 3 years since the pandemic.

Overall, the market will need time to recover from the US jobs reports, meaning, the down trend is projected to continue in the market over the following weeks. The bond sell-off may well continue and it would take a huge washout of stocks to see a retreat in yields. And worries about the fall of oil prices loom over the market. The only certainty is that there isn’t any certainty in the market right now.

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