Weekly Market Recap
September 22, 2023
The S&P 500 declined 2.9% this week, as interest rates hit multi-year highs. On Wednesday, the Federal Reserve did not raise their key interest rate, but continued to leave the door open for further hikes. Fed Chair Powell used the phrase “proceed carefully” six times during Wednesday’s press conference, likely indicating the Fed Funds rate can stay on hold instead of moving higher. While hikes might not occur, the message of keeping rates higher for longer was heard loud and clear by the markets. Bond yields rose, stocks declined, and the dollar strengthened. The S&P 500 traded down to similar to levels from mid-June and mid-August. The 50-day moving average (50 DMA) for the S&P 500 just turned downward for the first time since turning up in late November 2022. This is really a tool for short-term traders and is not a concern; a downward 50 DMA happened in 8 of the past 10 calendar years. This week, 5-year Treasury yield went over 4.6%, the highest since August of 2007, while the 10-year Treasury yield went as high as 4.49%. While housing remains under pressure from higher mortgage rates, the employment picture remains strong, as weekly unemployment claims dipped again. Next week, we will be watching updates on consumer confidence, consumer spending, and consumer inflation. Please see the updated Events & Videos section of our website that covers topics such as Estate, Medicare, Small Business, and Social Security: https://mybuckingham.com/events. If you have a friend or family member who could benefit from our financial planning, investment, and/or tax services, please direct them to https://mybuckingham.com/contact. Thank you.
Ryan P. Johnson, CFA, CFP®
Managing Director of Investments