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 4% for the week.
- Nasdaq was up even more, 6% for the week.
- Both up 18% for the year so far.
- Drivers?
- Nvidia (accounts 6% of the S&P 500) was up more than 13% after their CEO spoke at a Goldman Conference giving a positive outlook of AI and the demand for their products.
- Positive sentiment heading into next week’s FOMC meeting, where the Fed is expected to cut rates.
Economic Updates:
- CPI Data came in at around 3.2%, up 0.3% month-over-month, slightly above forecast.
- The number isn’t lower primarily due to persistent shelter costs, including rent and home prices, which remain the most “sticky” part of inflation, as they take longer to decrease.
- Supply constraints in the housing market are preventing inflation from falling further. However, prices have declined in areas like vehicles, personal medical care, and recreation.
- The Fed will lower interest rates by 25bps or 50bps (a 50/50 chance).
Next week:
- FOMC meeting
- Retail Sales
Stay tuned for next week.
– Andres
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