Weekly Market Insights: Powell: Fed is Ready for Rate Cut
Stocks notched a solid gain as dovish comments from Federal Reserve officials boosted the market’s recovery from early August lows. The Standard & Poor’s 500 Index rose 1.45 percent, while the Nasdaq Composite added 1.40 percent. The Dow Jones Industrial Average picked up 1.27 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, gained 2.98 percent.1,2 Dovish WeekStocks started the week strong, rallying after Wall Street welcomed dovish comments from Minneapolis Fed President Neel Kashkari. The S&P 500 and Nasdaq each posted gains on Monday–the 8th consecutive winning session. The Dow rose for the 5th session in a row.3,4 From there, markets traded in a narrow band until Wednesday afternoon when minutes released from the July 30-31 FOMC Meeting revealed more dovish comments. On Thursday, stocks dipped ahead of Fed Chair Jerome Powell’s annual Jackson Hole, Wyoming, speech.5,6 Well-received comments from Powell on Friday boosted markets, with all three averages closing higher.7 |
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“The Time has Come”The Fed’s annual symposium for global central bankers started Friday morning with Fed Chair Powell’s much-anticipated speech. Citing the risk of the labor market cooling even further, he said, “the time has come for policy to adjust.” Investors responded favorably, with the remaining question being how significant a rate cut might be. Powell kept that door open, adding that “the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”8 This Week: Key Economic DataMonday: Durable Goods. Tuesday: Consumer Confidence. Case-Shiller Home Price Index. Wednesday: Fed Official Raphael Bostic speaks. Thursday: GDP. International Trade in Goods. Jobless Claims. Pending Home Sales. Friday: Personal Income and Outlays. Consumer Sentiment. Source: Investors Business Daily – Econoday economic calendar; August 23, 2024 This Week: Companies Reporting EarningsWednesday: NVIDIA Corporation (NVDA), Salesforce Inc. (CRM) Thursday: Dell Technologies Inc. (DELL) Source: Zacks, August 23, 2024 |
“In a gentle way, you can shake the world.” – Mahatma Gandhi |
Gig Economy Tax TipsThere are some essential tips to remember if you work as a gig worker, someone who takes temporary work through one or more employers:
*This information is not intended to be a substitute for specific, individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional. Tip adapted from IRS.gov9 |
Boost Your Productivity With These TipsTake regular breaks. It seems counterintuitive, but most people are more productive when they take regular breaks. Do the challenging tasks first. Mark Twain famously said to “eat the frog first thing in the morning,” meaning you should tackle your most difficult task immediately. Make two to-do lists. One that has your weekly goals and objectives and one that has your daily tasks. Tip adapted from Formstack10 |
Anna, a supermarket clerk, has not slept during any of the past six nights, yet she is not tired. How can this be?
Last week’s riddle: It stands higher than any tree, yet it seemingly takes forever to grow, and you can’t see its roots. You won’t have to shimmy up any trunk to reach its top. What is it? Answer: A mountain. |
Moraine Lake |
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Footnotes and Sources1. The Wall Street Journal, August 23, 2024 2. Investing.com, August 23, 2024 3. The Wall Street Journal, August 23, 2024 4. The Wall Street Journal, August 19, 2024 5. MarketWatch.com, August 22, 2024 6. Reuters.com, August 22, 2024 7. The Wall Street Journal, August 23, 2024 8. The Wall Street Journal, August 23, 2024 9. IRS.gov, May 8. 2024 10. Formstack, May 8, 2024 |