Weekly Review for week ending 11/15/24

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 gave some back this past week, with the S&P500 and NASDAQ returning 2.34% and 3.42% after their impressive rally following the November 5 election. This pullback is notable after the prior week’s surge of 4.86% and 6.30% suggesting that the euphoria over election outcomes may have subsided as investors refocus on economic fundamentals (FactSet).

Inflation data for October painted a mixed picture. The Consumer Price Index (CPI) rose to an annualized rate of 2.6%, up from 2.4% in September. While the increase was expected and aligned with economists’ forecasts, it underscores the uneven progress toward the Federal Reserve’s 2.0% inflation target. Gasoline and oil prices have been instrumental in keeping inflation contained, but other areas of the economy are still applying upward pressure on prices (bls.gov).

The Federal Reserve’s stance remains a key focal point for markets. Comments from Fed Chair Jerome Powell hinted at a potential pause in rate cuts, with Powell stating, “The economy is not sending any signals that we need to be in a hurry to lower rates1.” This has led markets to temper expectations for a rate cut at the Fed’s upcoming mid-December meeting. Investors are recalibrating their outlook for monetary policy, factoring in a slower path to rate adjustments.

Looking Ahead

Economic data will continue to be front and center this coming week.  Any comments from Federal Reserve officials will likely be scrutinized for hints about their rate strategy heading into December.

For the markets, a sense of caution may prevail as investors assess the balance between economic resilience and the Fed’s ongoing fight against inflation. Stay tuned as the narrative unfolds.

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.

1https://www.federalreserve.gov/newsevents/speech/powell20241114a.htm

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