Weekly Review for week ending 9-13-24

I take pride in personally crafting each of these emails. Unlike many others in the industry who rely on prewritten content, I write these myself from scratch. My goal is to boil down complex concepts and share relevant news in an easy-to-understand format. I hope you find them both informative and enjoyable.

The stock market saw a strong rebound last week, with gains of 3.14% for the S&P 500 and 4.76% for the Nasdaq. This recovery completely erases the previous week’s steep losses (FactSet).

A key event that likely fueled the market rally was the release of the Consumer Price Index (CPI) report for August. The data showed consumer prices rose at a 2.5% annual rate, a notable drop from July’s 2.9% and the lowest inflation rate since February 2021. This softer inflation reading is inline with the goals of the Federal Reserve as it prepares to meet next week, where an interest-rate cut is widely anticipated.

However, shelter costs rose 0.5% last month. These higher shelter prices somewhat complicate the Fed's task of taming inflation, but they are not expected to derail the Fed’s anticipated rate cut next week. 

Looking Ahead

All eyes will be on the Federal Reserve’s two-day meeting, which concludes on Wednesday. The Fed is expected to deliver its first interest-rate cut  since they began raising rates back in March of 2022, but the size of the cut remains uncertain. Markets are mostly split between a 0.25% and a 0.50% reduction. If you ask me, they will proceed moderately downwards just like they had upward and sideways. I’ve seen a lot of signs that the unemployment market and inflation are both heading in the “right” direction although neither is in a free fall which would merit a .50% cut.

Additionally, we have important economic data releases this week since the housing market has remained so strong. Retail Sales will be reported on Tuesday, followed by Housing Starts on Wednesday and Existing Home Sales on Thursday.

If you’ve only recently joined my email list, you’ve missed out on many insights and updates that I've been sharing each week. Be sure to visit my blog to explore past content that you might find valuable.

Jeremy Raffer, MBA
Director & Wealth Manager
Author “Financial Planning for Widows”

m. 201-747-2705
w. rafferwealthmanagement.com
e. jeremy.raffer@stewardpartners.com

Steward Partners
115 W. Century Rd, Suite 145
Paramus, NJ 07652

Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investor's results will vary. Past performance does not guarantee future results. Future investment performance cannot be guaranteed, investment yields will fluctuate with market conditions.

For index definitions click here

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.

AdTrax 7020714.1 Exp 9/25