Weekly Review for week ending 8-23-24
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This past week, the S&P 500 and NASDAQ, saw gains of over 1%. After two strong weeks, the indices have nearly erased the losses from late July and early August. By Friday's close, the S&P 500 was just 0.58% below its mid-July record high, while the NASDAQ remained 4.13% off its peak (FactSet).
The week ended on a positive note following a key speech by U.S. Federal Reserve Chairman Jerome Powell. In his speech at Jackson Hole, Wyoming, Jerome hinting at the possibility of an interest rate cut at the Fed’s next meeting on September 18. Powell acknowledged that the labor market has cooled and inflation is edging closer to the Fed’s 2% target, reinforcing market expectations for a rate cut.
Powell’s remarks also seem to have sparked a rally in small-cap stocks. The Russell 2000 Index surged 3% on Friday, outpacing the roughly 1% gains seen by large-cap indexes (FactSet).
Looking Ahead
Next week brings several important economic reports that could influence market sentiment. On Thursday, we’ll see the second estimate of second-quarter GDP from the U.S. Bureau of Economic Analysis, along with weekly unemployment claims and pending home sales data. On Friday, the spotlight will be on the Personal Consumption Expenditure Price Index, which could provide further insight into the inflation outlook.
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The views expressed herein are those of the author and do not necessarily reflect the views of Steward Partners or its affiliates. All opinions are subject to change without notice. Neither the information provided nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Past performance is no guarantee of future results.
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