Downshift or Full Steam Ahead? | June 21, 2024

Markets were positive for the week overall. Is there a down shift happening or will it be full steam ahead?

Monday                       S&P 500 0.77%| NASDAQ 0.95%

Markets started the week fast with tech stocks, again, leading the charge. Attention was focused on comments by FOMC Members on rate cut forecasts. The 10-year US Treasury rose 8 basis points to 4.28% following the prior week’s drop.

Tuesday                       S&P 500 0.25% | NASDAQ 0.03%

Retail Sales numbers for May were released showing an increase from April but were lower than expected. S&P500 rose in trading for the day, moving above 1% on the week while the Nasdaq cooled and was relatively subdued. Manufacturing and Industrial production both surged ahead in May which was a welcome surprise. Markets are closed on Wednesday for the Federal Holiday.

Wednesday                 S&P 500 0.00% | NASDAQ 0.00%

Federal Holiday – Markets Closed

Thursday                     S&P 500 0.25% | NASDAQ 0.79%

A slew of Housing data was released on Thursday including Building Permits and Housing Starts. Both came in negative, which was of little surprise. The Dow Jones spiked on the day as tech stocks sold off which indicated a profit pull and rebalance from growth/tech stocks into value companies. The Atlanta Fed revised their GDP estimate to 3% (down slightly) for the 2nd Quarter.

Friday                          S&P 500 0.16% | NASDAQ 0.18%

Markets ended lower to finish off the week after a hot start on Monday. Services and Manufacturing both showed strength compared to forecasts. This will be closely watched as we continue into the summer months.

Conclusion                  S&P 500 0.61% | NASDAQ 0.01%

The markets made progress in the first half of the shortened trading week but fell through the end of the day on Friday. The Nasdaq took the brunt of the sell-off but was overall flat for the week. The Dow Jones Index closed higher (up 1.45% on the week), indicating a shift from highly appreciated companies into value companies. The week presented a mixed release of data throughout but still showed signs of strength heading into the end of Q2. If inflation trends downward, and the economy doesn’t pump the brakes on its momentum, the Federal Reserve should be able to provide guidance on the direction of the first rate cut.

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