Market Drama

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

August 26th, 2024 
Watch Time: 3.2 minutes

Welcome to this week’s Market Drama!

Stock Market Updates:

  • S&P 500 was up 1.4% for the week. Up 18% year-to-date, less than 1% away from all-time highs.
  • Nasdaq was up 1.4% for the week. 
  • All stocks (small/large cap) signal a confirmation of the direction of monetary policy.

Economic Updates:

  • Biggest catalyst: Jackson Hole meeting:
    • Federal Chairman’s speech signaled the importance of the Fed when it comes to the markets.
    • “The time has come for policy to adjust.”: the Fed will cut interest rates in September.
    • “The direction of travel is clear, and the timing and pace of  rate cuts will depend on incoming data.”: interest rates will be cut, the question is the timing and pace of those cuts.
      • If inflation continues to fall and the labor market continues to deteriorate, the Fed might have to cut faster and deeper in the coming months.
    • More balanced approach: The Fed will look at labor markets and inflation more equally. 

Next Week:

  • PCE Data.
  • Q2 GDP second revision data.
  • Nvidia reports on Wednesday.

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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