Category: Weekly Market Commentary

The Markets Checking in on the Federal Reserve. Among other things, Congress asks the Federal Reserve to use its tools to promote price stability and  maximum employment. Last week, economic data provided information about both. Inflation continued to increase Price stability means ensuring the prices of goods and services increase at a slow and stable… Read more »

The Markets Be careful what you ask for, you just might get it. In early March, almost two-thirds of Americans who participated in a Nationwide Retirement Institute survey said the Federal Reserve (Fed) should take more aggressive action on inflation. The next week, the Federal Open Market Committee (FOMC) did just that. It increased the… Read more »

The Markets Markets were reassured by the Federal Open Market Committee (FOMC)’s actions last week. The FOMC met on March 16 and did exactly what most people expected them to do. They raised the federal funds target rate by a quarter point. Federal Reserve Chair Jerome Powell said the Fed expects to continue to raise… Read more »

The Markets Investor optimism is quite low. In just two weeks, the war in Ukraine has changed the status of 1.3 million people – approximately the number of people who live in Philadelphia or Phoenix – from citizen to refugee, reported Rachel Pannett and colleagues at The Washington Post. Investors have been sharply focused on… Read more »

The Markets The world is adapting to a changing reality. As the war in Ukraine intensified last week, financial markets grappled with uncertainty. “After watching financial markets gyrate from hour to hour as Russia attacked Ukraine, I was getting dizzy myself,” reported Jeff Sommer of The New York Times. “People in Ukraine were dying. The… Read more »

The Markets Last week, Russia invaded Ukraine. Russian President Vladimir Putin’s decision ignited the biggest military conflict in Europe since World War II. The war is already exacting a terrible human toll. It has also disrupted global markets and raised questions about the potential economic impact on Russia, Ukraine and the rest of the world. … Read more »

The Markets Investors’ appetite for risk diminished as the Russian threat to Ukraine intensified. Volatility was high last week as investors guessed and second-guessed how markets would react if Russia invaded Ukraine and sanctions were imposed on Russia. They also wondered what would happen if Russia pulled back. The questions are difficult to answer. Adam… Read more »

The Markets Why did stock markets in the United States finish the week lower? If this were Jeopardy, acceptable answers to that question might include: Rising inflation. Major U.S. stock indices were trending higher until the Consumer Price Index (CPI) Summary showed inflation at a 40-year high. Consumer prices overall were up 0.6 percent in… Read more »

The Markets A rosy view through the rearview mirror. To say that economists did not have great expectations for the January employment report might be understating their position. It was widely believed that the spread of the COVID-19 Omicron variant would translate into a dismal jobs report.1 It didn’t. “After some estimates called for U.S.… Read more »

The Markets Last week, the January stock market decline was interrupted by a Friday afternoon rally. “The S&P 500 rose 2.4 percent, its biggest one-day jump since June 2020, while the technology-heavy Nasdaq composite rose 3.1 percent. Friday’s gain snapped a three-day streak of losses and left the S&P 500 up 0.8 percent for the… Read more »