Price Return Last Week
S&P 500 +1.5% S&P Mid Cap +2.8% Russell 2000 +3.6%
MSCI EAFE +2.7% MSCI EM +0.6%
10 Yr US Treasury Rate – fell from 3.89% to 3.81%
Source: Refinitiv Eikon
Recent News
Jay Powell Speech – In his most forceful indication to date that the Federal Reserve is ready to cut interest rates, Fed Chair Jerome Powell stated in a speech in Jackson Hole, Wyoming, “the time has come for policy to adjust.” He continued that the Fed “[does] not seek or welcome further cooling in labor market conditions.” Following his speech, the odds of an interest rate cut at the next Fed meeting were near 100%. The likelihood of a 50 basis point cut was approximately 35%.
Source: The Wall Street Journal, Refinitiv Eikon
Job Expectations Decline – A Federal Reserve Bank of New York consumer survey showed that 4.4% of respondents expect to become unemployed in the next 4 months. A record high for the survey that dates back to 2014. At the same time, the number of respondents expecting to receive a job offer in the next four months rose to 22.2%, the highest reading since March 2020.
Source: Bloomberg, Federal Reserve Bank of New York
Existing Home Sales – For the first time in five months, existing home sales increased compared to the prior month. Sales of previously owned homes were up 1.3% in July compared to June. Despite this increase, the adjusted annual rate of 3.95 million was the lowest level for any July since 2010.
Source: Refinitiv Eikon, The Wall Street Journal
Timing Flu Season – A new study published in medical journal BMJ suggests that getting a flu shot in October instead of August or December could reduce your chances of contracting influenza by as much as 10%. It is hypothesized that October is the ideal month because it takes several weeks after receiving the shot for your body to build up antibodies and if you get it too early, those antibodies could wear off before flu season has ended.
Source: The Wall Street Journal
Upcoming Events
8/27 – Consumer Confidence
8/28 – Notable Earnings Reports: Salesforce, HP, NVIDIA, CrowdStrike
8/29 – GDP 2nd Estimate, Notable Earnings Reports: Lululemon, Ulta Beauty, Dell, Autodesk
8/30 – PCE, Consumer Sentiment
Source: Refinitiv Eikon
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