Market Drama

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

October 9, 2023 
Watch Time: 3 minutes

Welcome to this week’s Market Drama!

  • The Stock Market:
    • The S&P 500 was up 0.5%.
    • Nasdaq was up 1.6%.
    • We had a couple weeks in a row of negative stock market performance.  
  • The Bond Market
    • Yield continued to rise.
    • It was up 0.2% to 4.79, which is a yield level we had not seen since 2007.
      • Economic data we can point to this:
        • September employment data came out and payroll gains came in at 336,000. Which was significantly higher than the consensus expected. 
        • Unemployment rate held steady at 3.8%.
  • Economic Snapsot:
    • Average hourly earnings came in at 4.15 year-over-year growth.
      • This is the fourth consecutive month in which we’ve seen the wage growth number come down – big positive development.
    • If wage growth and core inflation continue to come down, it might give the confidence for the Fed to lower interest rates. 
    • Rule of thumb for ten-year treasury yield – there is a relationship between nominal GDP growth and the ten-year treasury yield.
      • Long-term bonds try to give a proxy for inflation + real economic growth (nominal GDP growth). 

Coming up next week: 

  • CPI and PPI data. 

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. Zoe Financial does not provide legal advice.

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