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Week Ahead | Inflation Eased Thumbnail

Week Ahead | Inflation Eased

“Normalize talking about money so you can get better at money.”  -Scott Galloway, author “The Algebra of Wealth”

Last week's market recap: 

  • The S&P 500 closed the week up 1.60%. Year-to-date the index is up 11.80%
  • NASDAQ closed the week up 2.15%. YTD the index is up 11.47%
  • U.S. Aggregate Bond index was up .57%. YTD the index is down -1.40%
  • 10-Year Treasury Rate decreased, ending the week at 4.42% down from 4.50% the prior week
    • Fed Funds Target rate remains at 5.25-5.50%
  • The 1-Year Treasury is yielding 5.14%  
  • A 6 Month Treasury is yielding 5.38%  


Week ahead:  

  • Fed minutes
  • PMIs
  • Earnings: Nvidia, Palo Alto Networks, Lowes, Target, and more


Rate Cuts: 

April CPI showed a slight slowdown in both headline and core inflation.  This ended a short streak of upward inflation surprises, which also silences any discussions of rates hikes in the short term.  Accommodative polices seem to be next, maybe as soon as September. Below is a chart showing the futures market reflecting a 63.3% chance of a cut by September.

Source: CME Fed Watch Tool


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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