The Goldilocks Economy Drove Stocks Higher This Past Week

Published Friday, November 3, 2023 at: 8:30 PM EDT

The Standard & Poor’s 500 stock had its best week in nearly a year, following a weaker than expected jobs report that suggested the Federal Reserve’s 19-month monetary tightening campaign is slowing growth enough to quell inflation but not so much as to cause a recession. It’s a Goldilocks economy, not too hot and not too cold.

With 6.5 million job seekers and 9.6 million job opening, the red-hot labor market has cooled but remains strong. The excess demand for labor means that more jobs will be filled in the weeks ahead and the economy is likely to keep growing as those new workers earn income and spend it.

The Standard & Poor’s 500 stock index closed Friday at 4358.34, up +0.94% from Thursday, and a gain of + 5.85% from a week ago. The index is up +94.79% from the March 23, 2020 bear market low and down -9.14% from its January 3, 2022, all-time high.

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This article was written by a professional financial journalist for Advisor Products and is not intended as legal or investment advice.