It’s time to review last month’s key events and look ahead to what’s coming in the market and economic landscape. Download the latest edition of the Month-in-Review, developed by the Prime Capital Financial Investment Team!
Quick Takes
- A Comeback for Equities. The stock market did not like the start of August, but the indices ended the month higher after early declines. The first week of August saw the S&P 500 decline by over 4% and the Nasdaq decline over 5%. Both indices ended the month higher though finishing up over 3.5% each.
- The Road to 2%. As interest rates remain high and the labor market normalizes, inflation continues to decline. In July, the Consumer Price Index (CPI) fell to 2.9%. Meanwhile, the Fed’s preferred inflation gage, the Core Personal Consumption Expenditure (PCE) Index fell slightly from 2.8% to 2.7%.
- Dollar Declines Continue. As potential Fed rate cuts in September remain in focus while other central banks around the world are holding rates where they are or are raising them, the U.S. dollar continues to slip. The Bank of Japan raised rates at the end of July and August saw Fed Chair Powell change his tune on interest rate cuts for the first time since 2022.
- Income and Jobs. The U.S. saw unemployment rise in July as job creation slowed. Unemployment rose to 4.3% from 4.1% as the change in nonfarm payrolls came in at 114k, below the expected 175k and much lower than the previous month’s level of 206k.
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This article is not to be construed as financial advice. It is provided for informational purposes only and it should not be relied upon. It is recommended that you check with your financial advisor, tax professional and legal professionals when making any investment or any change to your retirement plan. Your investments, insurance and savings vehicles should match your risk tolerance and be suitable as well as what’s best for your personal financial situation.