Is it just me, or did the market slow?

From the desks of Stanley Katz & Lauren Madera

STAY SAFE & HAVE FUN!

Although all three of the major US stock market indices produced slight gains last week (i.e., DJIA: +1.30%, S&P 500: +0.57%, Nasdaq: +0.12%) and the S&P 500 breached a new high, it felt as though market momentum slowed! One can’t tell whether those sensations were simply an extreme summer heat wave zapping our strength or Nvidia giving back some gains. Currently, the S&P 500 trades at a price-to-earnings ratio of 22.16X trailing 12-months earnings and 21X projected 12-months earnings. Two expectations seem to be propping up the markets:

1. Tech sector earnings will continue to grow, and
2. The Fed will lower interest rates at some point.

We found Capital Group’s Mid-Year 2024 issue very interesting. It touches on a broad array of macro topics, including:

1. The US economy continues to power global growth.
2. The Federal Reserve’s rate path relative to inflation.
3. Future earnings expected to strengthen.
4. US election results and how they could impact markets.
5. All-time highs can be bullish for stocks.

If these haven’t piqued your interest, perhaps one of the 11 other topics will!

Below are links to a number of third-party research reports that we have read and analyzed over the past week. We hope you will find the information interesting, useful, and worthwhile.

Schwab:

• S&P Set for Another Weekly Gain but Signs of Exhaustion Emerging in Technology

Capital Group:

• Outlook | Midyear Issue | June 2024

J.P. Morgan Asset Management:

• How is homeowners’ insurance impacting the macro data?

Northern Trust:

• Weekly Economic Commentary

Argus:

• Moving Forward from Inflation

Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
937-293-5500

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