ClientFirst Financial Strategies
Financial Planning and Portfolio Management
US stock market indices incurred another down week, making it the third weekly loss for the S&P 500 and Nasdaq and the fourth for the DJIA. As stated in our previous Weekly H&Cs, the labor market remains strong, forcing the Federal Reserve to combat what appears to be 1970’s-like wage-push inflation.
All three of the major US stock market indices were in the red zone this week. We wonder which team will dominate there today in the Super Bowl!
Are we talking about interest rates or the US stock market? It’s both, in fact.
So far, so good! Or is it too good to be true? Right now, the S&P 500 is trading at a lofty 17.9x 2023’s expected earnings even though quite a few companies are projecting lower future earnings.
US stock market indices had mixed results during the shortened trading week. The economic theme du jour now features the debt ceiling, which the US hit this past Thursday.
After the negative results from 2022, should we just stop the clock right now for 2023? All three major US stock market indices produced positive returns for the second week in a row. Gosh, that feels good…for the moment.
One week into the new year, we have year-to-date gains to celebrate! More than likely, the US stock market will continue to experience high volatility this week with additional economic data and the beginning of 4Q2022 earnings releases.
For sure, the Grinch came out this past week with all three major US stock market indices sustaining losses. Some analysts place the blame on the Fed continuing to raise interest rates to fight inflation while others point the finger at institutional investors licking their wounds for the year by booking losses before year end.
Tis’ the season to be jolly but also the time of the year when analysts’ forecasts become most prevalent. Always remember, you can never be wrong if you don’t have an opinion! We are sharing two as food for thought.
This week, the Federal Reserve essentially signaled that interest rates will probably continue to rise but at a slower pace than they have throughout this year — meaning 0.50% versus 0.75% increases.