Market Summary – June 17, 2024

Last Week’s Summary

  • S&P 500 Index rose 1.62%
  • International Equities fell 1.67%
  • Emerging Markets rose 0.51%
  • U.S. 10-Year Treasury Yield fell to 4.22%
  • Consumer Price Index fell to 3.3%
  • FOMC kept interest rate unchanged
  • Initial Jobless Claims rose to 242k

What to Watch for This Week

  • T, 6/18/24 Retail Sales, Industrial Production, Business Inventories
  • W, 6/19/24 NAHB Housing Market Index, MBA Mortgage Applications
  • Th, 6/20/24 Initial Jobless Claims, Housing Starts
  • F, 6/21/24 Existing Home Sales

Weekly Market Recap

U.S. stocks and bonds saw early gains on Wednesday following a report that showed the Core Consumer Price Index had cooled to its slowest pace in over three years.

On the same day, the Federal Reserve indicated it plans to make just one quarter-point rate cut this year, down from the three cuts anticipated in March. The Fed also revised its 2025 outlook to include four cuts.

Fed Chair Jerome Powell welcomed the latest inflation figures, expressing hope for more similar reports. He noted that while Wednesday’s data had increased their confidence in the inflation trajectory, it wasn’t sufficient to justify rate cuts at this time.

However, the counterbalance of higher interest rates on the economy emerged as a gauge of consumer sentiment dropped to a Seven-Month low, with high prices continuing to affect views on personal finances. Meanwhile, international equities tumbled as a renewed wave of anxiety hit global markets due to a deepening political crisis in France.

Concerns escalated after French President Emmanuel Macron called for a snap election, leading to a decline in stocks and a shift towards haven assets such as bonds, gold, and the U.S. dollar.

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