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Happy Father’s Day! The S&P 500 and the NASDAQ recorded their seventh positive week out of the past eight, with both indexes pushing their record levels higher. The NASDAQ posted a 3.3% total return while the S&P 500 added 1.6%; the Dow was an outlier with a 0.5% decline. As some of you are aware, my father passed away a week ago. My parents were married for over 60 years. I have broken down this week’s update using the lyrics to their song, Moon River.

We’re after the same rainbow’s end

We all want the same thing as the Federal Reserve, lower inflation. The Consumer Price Index recorded no change in May relative to the previous month; on a 12-month basis, May’s inflation figure was 3.3%, better than economists’ forecasts for 3.4%. The market tends to overreact to the CPI number while it is better than expected it is still above the Fed’s target for inflation.

Oh, dream maker

Apple was a dream maker this week posting huge gains this week. The run in Apple fueled the technology sector gains and enthusiasm over artificial intelligence. The U.S. large-cap growth index again outperformed its value counterpart by a wide margin, extending the growth style’s year-to-date leadership. Over the past four weeks, the growth index has gained around 6.0% versus a 3.3% decline for the value benchmark. I expect this trend to continue.

Wherever you’re goin’, I’m goin’ your way

The market continues to look to the Fed for direction. No surprise this week. The Fed stayed the course for its seventh meeting in a row. Chair Jerome Powell referenced that the CPI report was better than expected. The latest Fed projections suggest the possibility of just one interest-rate cut this year, down from the three cuts that the Fed had projected as recently as March.

If you’d like to speak about your investments or your plan, my calendar link is below and you can schedule a phone or zoom appointment. Note: My phone will be off on Tuesday, if you need to reach me that day please email.