ClientFirst Financial Strategies
Financial Planning and Portfolio Management
The major US stock market indices posted tremendous gains this week on the heels of Tuesday’s presidential election. The other major event this week was the Federal Reserve meeting. Chairman Powell announced a 0.25% cut to the Fed Funds rate.
All three major US stock market indices dropped last week driven by tech stock performance post earnings announcements. Although Alphabet/Google, Microsoft, Meta/Facebook, Amazon, and Apple came through with solid earnings, Wall Street expressed concerns with growing capital expenditures drawing from future profitability.
Both the DJIA and S&P 500 had negative returns last week while the Nasdaq was slightly positive. The latest data still reflects slow economic growth with some inflationary pressures as evidenced by rising US Treasury yields.
For the sixth week in a row, all three major US stock market indices posted gains with DJIA, S&P 500 and even gold making record highs!
For the fifth week in a row, all three major US stock market indices posted gains. And the S&P 500 closed at a record high!
US stock market indices eked out a fourth straight week of gains, pushing the DJIA to another record high.
The major US stock market indices were marginally positive this week, stretching the gains streak to three weeks. Although both the DJIA and S&P 500 hit record highs, they did so without the assistance of the Magnificent 7.
Analysts and economists were on the edge of their seats as the Federal Reserve’s Open Market Committee met and announced a 0.50% cut to the Fed Funds interest rate.
All three major US stock market indices rebounded hard this week. Most of the hope hinges on the Federal Reserve meeting occurring September 17-18. At this juncture, it appears to be a coin flip whether the Fed will reduce the Fed Funds rate by 0.25% or 0.50%.
Labor Day is behind us, which means we’re squarely in September. That’s certainly what the stock market reinforced with its performance last week! Historically, volatility rises in September and October, especially in presidential election years.