Economic Statistics Bolster Confidence! Financial Markets Last week proved to be a big confidence builder for the U.S. economy. Friday’s job numbers provided investors with a strong sense that the Federal Reserve’s efforts are working and that a soft landing is becoming even more likely. As you will note from the table below, markets didn’t break…

A Tidal Wave of Liquidity! Financial Markets United States equity markets continued to advance this week.  The Federal Reserve sent a powerful message two weeks ago when it lowered rates by 50 basis points. Investors interpreted the move to mean the Fed is on a clear easing path and will not hesitate to cut rates…

They did it! Financial Markets As expected, the Federal Reserve lowered interest rates this past week.  While the cut was widely anticipated, the magnitude of the cut was a bit surprising.  The Fed cut rates by 50 basis points, a large move by historical standards.  There was some market volatility around the announcement, but major…

The Age of Productivity Equity markets certainly had an excellent week!  Despite receiving some higher than expected inflation data last week, investors appear fully convinced that the Federal Reserve is their friend.  The only question is how good a friend.  Well, they will find out on Wednesday, when the Federal Reserve Open Market Committee concludes…

Feast or Famine Financial Markets Equity markets sold off last week, with the S&P 500 experiencing its worst week since March 2023.  As our title suggests, investors appear to be reacting impulsively rather than deliberately.  The major concern this past week was the economy, and Friday’s widely anticipated employment report propelled markets lower.  Specifically, the…

A Return to Balance Financial Markets Chairman Powell’s speech at Jackson Hole greatly relieved participants in financial markets and the real economy.  Ultimately, Powell signaled to the world that more accommodative monetary policy is on the way.  For so long, everything seemed to hinge on inflation coming down and the labor market coming into better…

The Best Week Yet! Financial Markets This past week was one of the best for equity markets in a very long time—the strongest of the year and the best week since November 2023, to be exact.  One of the most comforting aspects of last week was equities responding to economic releases rationally rather than being…

A Remarkable Week! Markets Last week’s equity market performance was remarkable, indeed.  After Monday’s significant decline, markets managed to bounce back and finished the week only slightly in the red.  By Friday, markets were operating as if the turbulence was over.  That would be nice, but we expect that there may be more volatility to…

Welcome to a Correction Financial Markets This past week was punishing for investors, and the market weakness has only intensified a few hours into the market open.  Interestingly, last week began in good shape.  Investors awaited the Federal Reserve’s rate decision and Chairman Powell’s post-meeting press conference, which went very much as expected.  While the…

A Dramatic Week Financial Markets Investors had much to ponder this past week.  Developments in the presidential race, earnings announcements, and notable economic releases topped the list.  While President Biden’s withdrawal from the race added another wrinkle in an already eventful election season, politics was not a major factor in the markets last week.  The…