Transcript: Hi, it’s Danny Lacey with Kramer Wealth Managers. Today, I’m here to share the quarterly market insights for Q2 2024.
Stocks lost ground in April as investors struggled with mixed economic news and mixed signals from the Fed.
Fresh Consumer Price Index data showed that March inflation was hotter than expected, However, retail sales for March suggested consumers were spending despite rising inflation. Fed Chair Jerome Powell possibly unsettled investors when his tone appeared to shift from confident to cagey about interest rate cuts. Also, tensions in the Middle East continued to rattle the markets.
Following a rocky start, stocks finished the second quarter higher as investors remained optimistic the Fed will manage interest rates with inflation trending lower.
For the quarter, the Standard & Poor’s 500 Index rose 3.92 percent, and the Nasdaq Composite picked up 8.26 percent. By contrast, the Dow Jones Industrial Average fell 1.73 percent.
Markets turned in May, however, rallying around upbeat Q1 corporate reports and signs that the economy remained strong.
Some market watchers called it a “Goldilocks” economy, which is defined by economic activity that is neither too hot nor too cold. For example, the 175,000 jobs created in April was less than the 240,000 economists expected but still considered a solid showing.
This momentum, along with news that inflation rose less than expected in May, bolstered investor sentiment.
Should we expect interest rate cuts anytime soon? We’ll keep an eye out. The upcoming Q3 2024 will be very interesting to observe the Fed Reserve’s next steps. Thank you.
