Recap | Week Ahead | Jitters — CRA Financial, LLC

"Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria." - Sir John Templeton

Last week's market recap:

The S&P 500 closed the week down -2.55%. Year-to-date the index is up 8.43%
NASDAQ closed the week down -4.65%. YTD the index is up 10.92%
U.S. Aggregate Bond index closed the week down -.54%. YTD the index is down -.17%
10-Year Treasury Rate increased, ending the week at 4.55% up from 4.45% the prior week

Fed Funds Target rate remains at 3.50-3.75%

The 1-Year Treasury is yielding 3.82%
The 6 Month Treasury is yielding 3.80%

The week ahead:

CPI and PPI reports (Inflation data)
Consumer Sentiment
U.S.-Iran Conflict
Space X IPO
Corporate Earnings: Adobe, Chewy, Oracle, and more

Quick Comments:

Late last week, chip stocks sold off sharply. The Nasdaq was down almost -5% on Friday, and bond yields climbed higher.

What caused these market jitters? It was probably a little bit of a lot...

The S&P 500 was up 9 weeks in a row. Many investors felt we moved too fast to the upside.
A.I. Strength was in question. The Wall Street Journal highlighted that OpenAI missed sales targets and the company may be projecting major losses. Could this impact the A.I. megatrend?
Dilution: Space X with the largest IPO ever this week. Google announcing a record breaking $85B capital raise. Meta considering a capital raise.
Anthropic and OpenAI IPOs coming soon. Mega Cap Tech is asking the public for money. They'll get it, but investors and Indexes need to sell something to add and re-weight. Bitcoin looks like it's been a source of funds.
Friday's better than expected jobs data sent yields higher as the odds of a future Fed Rate cut went down.
Geopolitical Tension: Many traders don't want to take geopolitical risk over the weekend.

Asset allocation decisions are active calls. We're seeing improving earnings growth beyond tech. Job creation in the labor market. Bond yields at a level that pays investors. For now, the bull market remains in-tact.

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®

Joe McCaffrey, CFP®

Gordon Shearer Jr., CFP®

Jeff Hilliard, CFP®, CRPC®

Phillip Tompkins, CFP®

Important Disclosure Information

Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by CRA Financial, LLC [“CRA]), or any non-investment related content, made reference to directly or indirectly in this commentary will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this commentary serves as the receipt of, or as a substitute for, personalized investment advice from CRA. Please remember to contact CRA, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently. CRA is neither a law firm, nor a certified public accounting firm, and no portion of the commentary content should be construed as legal or accounting advice. A copy of CRA’s current written Disclosure Brochure discussing our advisory services and fees continues to remain available upon request or at www.crafinancial.com. Please Note: If you are a CRA client, please advise us if you have not been receiving account statements (at least quarterly) from the account custodian.

Historical performance results for investment indices, benchmarks, and/or categories have been provided for general informational/comparison purposes only, and generally do not reflect the deduction of transaction and/or custodial charges, the deduction of an investment management fee, nor the impact of taxes, the incurrence of which would have the effect of decreasing historical performance results. It should not be assumed that your CRA account holdings correspond directly to any comparative indices or categories. Please Also Note: (1) performance results do not reflect the impact of taxes; (2) comparative benchmarks/indices may be more or less volatile than your CRA accounts; and, (3) a description of each comparative benchmark/index is available upon request.

Please Note: Limitations: Neither rankings and/or recognitions by unaffiliated rating services, publications, media, or other organizations, nor the achievement of any professional designation, certification, degree, or license, or any amount of prior experience or success, should be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results if CRA is engaged, or continues to be engaged, to provide investment advisory services. Rankings published by magazines, and others, generally base their selections exclusively on information prepared and/or submitted by the recognized adviser. Rankings are generally limited to participating advisers (to the extent applicable). Unless expressly indicated to the contrary, CRA did not pay a fee to be included on any such ranking. No ranking or recognition should be construed as a current or past endorsement of CRA by any of its clients. ANY QUESTIONS: CRA’s Chief Compliance Officer remains available to address any questions regarding rankings and/or recognitions, including the criteria used for any reflected ranking.