Recap | Week Ahead | Hefty Cut — CRA Financial, LLC

“This recalibration of our policy stance will help maintain the strength of the economy and the labor market, and will continue to enable further progress on inflation as we begin the process of moving toward a more neutral stance.” – Federal Reserve Chair Jerome Powell, 9/18/24

Last week's market recap

The S&P 500 closed the week up 1.39%. Year-to-date the index is up 20.78%
NASDAQ closed the week up 1.51%. YTD the index is up 20.21%
U.S. Aggregate Bond index closed the week down -.22%. YTD the index is up 4.70%
10-Year Treasury Rate increased, ending the week at 3.73% up from 3.66% the prior week
- Fed Funds Target rate remains at 4.75-5.00%
The 1-Year Treasury is yielding 3.95% (52 Week Low)
A 6 Month Treasury is yielding 4.47% (52 Week Low)

The week ahead:

PCE Inflation Data
Remarks from Fed Officials
Consumer Confidence
New and Pending Home Sales Data
Earnings: Costco, Micron Technologies, and more

Comments:

U.S. stocks hit new highs last week after the Fed’s hefty .50% rate cut.

Election day is only six weeks away. Many are expecting increased market volatility. The market wants a divided government. It doesn’t look like either party will sweep the White House, House and Senate. This is what the market wants.

The market doesn’t want signs of sticky inflation and/or jobs data surprises. Economic data trumps election headlines.

* Source: BlackRock Student of the Market

As always, let us know if you have any questions.

Best,

CRA Investment Committee

Matt Reynolds CPA, CFP®

Tom Reynolds, CPA

Robert T. Martin, CFA, CFP®

Gordon Shearer Jr., CFP®

Jeff Hilliard, CFP®, CRPC®

Joe McCaffrey, CFP®

Phillip Tompkins, CFP®

* https://www.blackrock.com/us/financial-professionals/insights/student-of-the-market

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