Weekly Review for week ending 10-11-24
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The S&P 500 and NASDAQ each climbed more than 1% last week, marking their fifth consecutive week of gains. Both indexes extended the market’s recovery from early September’s sharp losses. The S&P 500 pushed to new highs, and the NASDAQ now sits just 2% below its all-time peak. Year-to-date, both indexes remain solidly positive, adding to investor optimism (FactSet).
The latest Consumer Price Index (CPI) report showed inflation cooling but at a slower pace than expected. Prices rose at a 2.4% annual rate in September, down from 2.5% in August, but slightly above economists’ forecast of 2.3%. While some worry that slower progress might complicate the Fed’s path for rate cuts, I see this as steady, healthy progress. Sudden drops in inflation can be disruptive, so this measured decline is more aligned with the kind of stability I’d prefer to see (BLS.gov).
In my opinion, the Fed will likely reduce rates by 0.25% in both November and December, bringing the total for the year to a 1% cut. Looking ahead to 2025, I expect another 1% reduction spread evenly over the year, contingent on economic data. So far, the Fed seems to be achieving a “soft landing,” with inflation slowing, unemployment remaining low, and GDP showing strength—a promising combination.
Looking Ahead
This week appears relatively quiet on the economic front, providing investors a brief break from major data releases.
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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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