From the desks of Stanley Katz & Lauren Madera
HAPPY GROUNDHOG DAY! WE’RE ON “TEAM NO SHADOW.”
February is coming in like a lion – but will it go out like a bull or a bear?
The U.S. stock market wrapped up January this past week on a mixed note (i.e., DJIA: +0.27%, S&P 500: -1.00%, Nasdaq: -1.64%). Argus’s analysts paint an intriguing picture for 2025, highlighting how major themes like artificial intelligence, cybersecurity, and clean energy could shape markets ahead. While their analysis suggests S&P 500 earnings could grow by 12% this year after a 9% rise in 2024, they note that the start of 2025 may face headwinds as the Federal Reserve grapples with stubborn inflation and companies navigate an evolving policy landscape.
The Fed’s cautious stance was on full display this week, as detailed in J.P. Morgan’s latest analysis. The central bank kept interest rates steady at 4.25-4.50% in its first meeting of the year, putting the brakes on a three-meeting streak of rate cuts. While the Fed acknowledged improvements in the labor market’s stability, they’re taking what J.P. Morgan calls a “patient approach” given recent upticks in inflation. Think of it like a driver tapping the brakes on a winding road – you’re still moving forward, just more carefully than before. This measured pace suggests market volatility could stick around like winter weather, with Argus warning that any policy surprises could send ripples through financial markets.
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.
Argus:
J.P. Morgan Asset Management:
Zacks:
Nuveen:
Northern Trust:
Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
937-293-5500
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