Market Drama

Featuring Zoe CEO & Founder, Andres Garcia-Amaya, CFA

April 22, 2024 

Watch Time: 3.6 minutes

  • Welcome to this week’s Market Drama!

Stock Market Updates:

  • The S&P 500 was down 3% for the week. Down 5.5% from the recent highs.
    • 3rd week in a row that we’ve seen the market go down.
  • Nasdaq was down even more, 5.5%. Down 7% from the recent highs.
  • Oil was down 4% YoD. Oil is now 14.6% up for the year.

3 Factors Affecting the Market: 

1. The Stock Market is repricing because the Federal Reserve is likely to reduce interest rates just once this year, rather than the anticipated three times. It is now expected that interest rates stay higher for longer. 

  • The Treasury yield has gone from 4.3% up to 5%. Telling us that treasury investors are expecting 2 years from now for interest rates to be closer to 5% rather than 4.3%. 
  • Why the repricing? Inflation is coming down and not at the pace that the stock market was expecting. 

2. Geopolitical tensions in the Middle East have been rising, affecting oil prices. Right now, oil prices seem to have stabilized, oil was down 4% last week.

3. S&P 500 quarterly earnings are underway. Although companies are beating forecasts, the outlook for future earnings that they’re offering has been softer than expected, specifically the banks. 

Coming up next week:

  • First quarter GDP numbers
  • PCE inflation data
  • Earnings from tech companies

Stay tuned for next week.

– Andres

Disclosure: This material provided by Zoe Financial is for informational purposes only. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Nothing in these materials is intended to serve as personalized tax and/or investment advice since the availability and effectiveness of any strategy is dependent upon your individual facts and circumstances. Zoe Financial is not an accounting firm- clients and prospective clients should consult with their tax professional regarding their specific tax situation. Opinions expressed by Zoe Financial are based on economic or market conditions at the time this material was written. Economies and markets fluctuate. Actual economic or market events may turn out differently than anticipated. Facts presented have been obtained from sources believed to be reliable. Zoe Financial, however, cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. 

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