The stock market continued its impressive performance last week, with the S&P 500 gaining 1.22%. Stock gains were fueled by the Federal Reserve’s decision to cut interest rates for the first time this year, bringing the range to 4.00%-4.25%. The majority of the FOMC participants forecasted further reducing the Fed Funds rate by 0.50% in 2025.
While lower rates are good for some borrowers and investors, they also reduce short-term savings rates, so it is best to stay apprised of reduced rates on savings, money markets, and short-term investments.
Estimates of U.S. retail and food services sales for August rose 0.6% from the previous month and climbed 5.0% from August 2024. Both import and export prices exceeded expectations last month. U.S. import prices advanced 0.3% in August following a 0.2% increase in July.
Weekly Outlook
This week brings plenty of data for markets to digest. Key reports include updates on sales of existing and new homes, the final estimate for second-quarter GDP, and the personal consumption expenditures price index for August, which will provide insights into inflation trends.
For a more detailed analysis of last week’s markets and economic trends, check out the latest issue of Market Week.
Follow us on Facebook for these weekly updates and articles at Unify Financial Advisors Facebook Page.
Thank you for reading! You are welcome to contact me directly with questions or comments.
Regards,
David Bennett