Last Week’s Market Movement: The market closed the week on a positive note, thanks to a temporary resolution of the port strike and the release of new unemployment data. Port Strike Update: The Union and port workers reached a temporary agreement, allowing workers to return to their jobs with a 62% wage increase, slightly below the initial demand of 77%. While this agreement is only in place until January 15th, the immediate threat of disruption has subsided, easing market concerns over potential supply chain impacts. Unemployment Data: The U.S. economy added 225,000 jobs to the private payroll sector, lowering the unemployment rate to 4.1% from last month’s 4.2%. This improvement reassures investors who were worried that the Fed's recent 50...
Markets hit a new milestone last week, with major indexes reaching another all-time highs, driven by positive GDP and inflation data. Second quarter GDP grew at a rate of 3%, meeting expectations and reassuring investors that the U.S. economy is not slipping into a recession. Additionally, the PCE inflation report came in at 2.2%, the closest it has been to the Federal Reserve’s 2% target, further bolstering investor confidence. These encouraging economic reports pave the way for more interest rate cuts and help reassure investors that The Fed’s decision to cut rates by 50 BPS was the right decision. This week, attention turns to the labor market as September’s employment data is set to be released. The U.S. unemployment rate...
Last week, the S&P 500 reached a historic all-time high, driven by the Federal Reserve’s unexpected decision to cut interest rates. The Fed announced a 50 basis points (BPS) rate reduction, citing a positive trend in inflation data and a resilient labor market. This “jumbo” rate cut has raised questions among investors and analysts alike. While the Fed emphasized the decreasing inflation as justification, critics argue that it might be a proactive attempt to stave off rising unemployment and prevent a potential recession. Throughout this week, various Federal Reserve members will be speaking to provide additional insights into the rationale behind this significant rate cut and their individual perspectives on the future direction of U.S. economic policy. Economic Data to...
Weekly Stock Market Update & SPY Analysis The most anticipated week of the year is here, with all eyes on the Federal Reserve’s interest rate decision at the upcoming FOMC meeting. Although the Fed has held several meetings this year, this one holds particular significance—it’s expected to be the first where they finally reduce interest rates. The key question is whether the cut will be by 25 or 50 basis points. Back in March 2022, the Fed initiated its rate hike cycle to combat soaring inflation, which had surged to 8.5%, far exceeding the healthy 2% target. Inflation later peaked at 9.1%, according to the U.S. Bureau of Labor Statistics. To address this, the Fed implemented aggressive rate hikes not...
Weekly Stock Market Update & SPY Analysis The strength of last month’s recovery rally came into question as September kicked off, following renewed fears of an economic slowdown. Megatech stocks tumbled, causing the S&P 500 to post its worst week since March 2023. The uncertainty around U.S. economic health has shifted away from company earnings and more toward the labor market. Elevated interest rates and tight monetary policy have impacted hiring and employment, pushing the U.S. unemployment rate to 4.2%, according to Friday’s report. Although it ticked down from last month’s 4.3%, the significant slowdown in hiring has unnerved investors. Fortunately, the Fed is set to reduce the central interest rate later this month, but the question now is whether...
