Hope all is well with you and your family.
Here is what you need to know from this week using football terminology since the NFL season started this week.
Tech Stocks Drop the Ball
The major U.S. stock indexes fell for the second week in a row, retreating again from the record highs that the S&P 500 and the NASDAQ achieved on September 2. The market was turbulent in a holiday-shortened week, with the NASDAQ posting a 4% decline on Tuesday followed by a nearly 3% gain on Wednesday. The NASDAQ on Tuesday fell into a correction, as the index was down 10% from the record high that it had set just six days earlier. Several of the market’s biggest technology stocks weighed on the NASDAQ, posting weekly declines of more than 5%.
Inflation Rising Up
Prices are rising. Inflation remains below the U.S. Federal Reserve’s 2.0% target, but it’s rising even as unemployment remains high. The Department of Labor on Friday reported that consumer prices rose 0.4% in August compared with July, or 1.3% from a year earlier. In contrast, the year-over-year rise was just 0.2% as recently as May.
Congress Keeps Relief Package On The Sideline
Prospects for approval of another congressional stimulus package before the November election appeared to dim, as a GOP-authored coronavirus relief package failed to secure enough Senate votes to move forward. Democrats said the measure doesn’t go far enough, and the sides remained at odds over issues such as state aid and another round of direct payments to Americans.
Fed Meeting Next Week To Determine The Game Plan
While no major policy moves are expected when the U.S. Federal Reserve Board concludes a two-day policy meeting on Wednesday, Chairman Jerome Powell could offer some further details on a recent shift in how the Fed views inflation. Powell said last month that the Fed won’t worry as much as it previously had about the prospect of low interest rates triggering rising prices.
I am here to help at any time. If you would like to schedule a phone/web conference appointment, I have included a link to my calendar below and you can self schedule. For those of you who prefer an in person meeting I am now scheduling in person meetings as well, please email me if you would prefer an in person appointment.