Executive Mosaic’s GovCon Index slipped 1.15% to $139.45, extending its slump and posting a weekly loss of 1.96%. The Dow Jones Industrial Average shed 0.86%, while the S&P 500 and Nasdaq Composite fell 1.26% and 1.53%, respectively. Market analysts concede that a strong bond market rattles and weakens stocks. The 10-year Treasury yield crossed 5% briefly before settling at 4.912%.
Rising bond yields hounded the stock market for most of the week, eventually leading to Wall Street losses. Nasdaq registered its second consecutive week of losses, dropping 3.2% overall. The total weekly losses of the S&P 500 Index and Dow Jones were 2.4% and 1.6%. Investors are also monitoring the escalating geopolitical tensions and oil price movement.
Fed Chairman Jerome Powell hinted at a rate pause in November a day before. Cleveland Fed President Loretta Mester, a top central bank official, told the Manhattan Institute that the Feds are nearing or at a holding point on the funds rate. However, she favors one more rate hike before year-end. “It is important to guard against becoming complacent if it takes longer and longer to achieve the Fed’s 2% goal,” Mester adds.
Meanwhile, traders worry about the ripple effect if the 10-year Treasury note stays above 5% longer than it should. It could increase rates on consumer loans such as mortgages, auto loans, and even student loans.
On the GovCon Index side, Palantir Technologies (NYSE: PLTR) led 27 decliners, dropping 5.57% to $16.11. Only Globalstar (NYSE: GSAT), BAE Systems, and the Carlyle Group (NYSE: CG) ended the week in positive territory.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 139.45 | -1.61 | -1.15% |
| Dow Jones Industrial Average | 33,127.28 | -286.89 | -0.86% |
| S&P 500 | 4,224.16 | -53.84 | -1.26% |
| NASDAQ | 12,983.81 | -202.37 | -1.53% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| GSAT | 1.28 | 0.03 | 2.40% |
| BAESY | 52.38 | 1.10 | 2.15% |
| CG | 27.73 | 0.19 | 0.69% |
| J | 132.51 | -0.31 | -0.23% |
| MMS | 77.41 | -0.26 | -0.33% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| BAESY | 52.38 | 1.10 | 2.15% |
| CG | 27.73 | 0.19 | 0.69% |
| GSAT | 1.28 | 0.03 | 2.40% |
| MMS | 77.41 | -0.26 | -0.33% |
| J | 132.51 | -0.31 | -0.23% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| PLTR | 16.11 | -0.95 | -5.57% |
| VVX | 50.82 | -1.43 | -2.74% |
| CAE | 20.89 | -0.51 | -2.38% |
| ACN | 297 | -5.94 | -1.96% |
| TXT | 75.9 | -1.44 | -1.86% |
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