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