Market Drama
Featuring Zoe CEO & Founder, Andres Garcia-Amaya, CFA
Welcome to this week’s Market Drama!
Stock Market Updates:
- The S&P 500 hit new record heights. It was up 0.6% for the week, up 20.3% for the year.
- Nasdaq was up even more, up 1% for the week. Up 20.7% for the year.
- What’s driving this? The Fed’s rate cuts, cooling inflation, and a strong economy fuel market growth.
Economic Updates:
- The PCE index (a key inflation measure) rose 2.2% year-over-year in August, better than expected.
- Core PCE (excluding food and energy) matched forecasts at 2.7%.
- Revised Q2 GDP showed 3% annual growth, slightly above projections.
- With the economy growing at 3%, inflation under 3%, and unemployment below 5%, the outlook remains positive.
- Consumer Discretionary stocks are leading as lower borrowing costs spur consumer credit.
- Chinese stocks surged last week after their Central Bank announced measures to boost growth. As the world’s second-largest economy, this faires well for global markets.
Next week:
- Payrolls data
- ISM data
- PMI data
Stay tuned for next week.
– Andres
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