Market Drama

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

December 18, 2023 
Watch Time: 4 minutes

Welcome to this week’s Market Drama!

  • The Stock Market:
    • The S&P 500 was up 2.5% for the week.
    • Nasdaq was up 2.8% for the week.
    • It’s the seventh consecutive week of positive returns.
    • The catalyst? The Federal Reserve meeting last week.
  • Economic data points:
    • The Federal Reserve meeting last week:
      • Put out its dot plot – giving a sense where each member feels interest rates will be. Dot plot pointed to three rate cuts in 2024.
      • Chairman Powell noted the importance of reducing restriction on the economy before 2% on inflation to avoid overshooting.
      • Inflation doesn’t have to reach 2% for the Fed to start cutting interest rates. 
    • Ten-year treasury bond yield is down by nearly 30 basis points. 
      • Down over 1% since the high in mid-October. 
      • Yields are lower than 4% which is the lowest since July 1st of this year. 
    • Interest rate sensitive parts of the stock market are performing better. 
      • Small cap stocks rose over 11% this month so far.
      • S&P real estate sector is un 12%.
      • Broadening of stock representation. 

Happy holidays and Happy New Year’s. 

– 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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