Market Drama
Featuring Zoe CEO & Founder, Andres Garcia-Amaya, CFA
Welcome to this week’s Market Drama!
Stock Market Updates:
- S&P 500 was down 0.8% for the week.
- Nasdaq was down even more, 2% for the week.
- Dow Jones was up 0.7% for the week.
Economic Updates:
- U.S. second-quarter GDP came in at 2.8%.
- Personal consumption expenditures: Consumer is holding up, it increased 2.3% for the quarter.
- U.S. PCE June numbers (food & energy excluded): 2.6% YoY inflation, same growth seen in May, thus showing inflation continues to move in the right direction.
- Economy is holding up, inflation is cooling off, it paints a good picture for the Fed to lower interest rates towards the end of this year or early next year.
- Sparked rally for small-cap companies, valuation remains a lot cheaper than these large tech companies which have secular growth.
- Some of the spark has been driven by former President Trump moving up significantly prior to President Biden dropping off from the race.
- Tariff Trade: Former President Trump’s mandate on international affairs is to impose more tariffs. This tends to favor the smaller-cap companies in the U.S. since it protects them.
Stay tuned for next week.
– Andres
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