Recap | Week Ahead | Trifecta

"Volatility is the price of admission.” – Wall Street Adage

Last week's market recap:

• The S&P 500 closed the week up 3.99%. Year-to-date the index is up 17.47%
• NASDAQ closed the week up 5.35%. YTD the index is up 18.00%
• U.S. Aggregate Bond index was up .53%. YTD the index is up 2.91%
• 10-Year Treasury Rate decreased, ending the week at 3.89% down from 3.94% the prior week
  • Fed Funds Target rate remains at 5.25-5.50%
• The 1-Year Treasury is yielding 4.49%  
• A 6 Month Treasury is yielding 4.97%  

The week ahead:  

• FOMC Minutes
• Jackson Hole Meeting – Jerome Powell speaks on Friday
• PMIs
• New Home Sales
• Earnings: Lowes, Target, Snowflake, and more

Quick Comments:

 Last week sentiment shifted positively with 3 upbeat economic data points.

1. Producer Price Index (PPI) rose less than expected 
2. Consumer Price Index (CPI) rose less than expected
3. Stronger than expected Retail Sales

The two major themes driving the market right now are slowing inflation and positive economic data.  Jerome Powell’s speech later in the week from Jackson Hole will be in the spotlight as investors will be looking for hints regarding the next rate cut.  

Markets should be able to perform well in a lower inflation/slower economic growth/rate cutting environment, but investors need to remember market volatility is normal.  We’re heading into a seasonally weaker September and October, along geopolitical tensions, and a U.S. Presidential election. Many investors should use pullbacks as opportunities to rebalance and reposition. 

Source: JP Morgan – Chart of the Week

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®

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