Market Drama

Featuring Zoe CEO & Founder, Andres Garcia-Amaya, CFA

June 20, 2023 
Watch Time: 5 minutes

Welcome to this week’s Market Drama!

  • The Stock Market:
    • The S&P was up 2.6% for the week, that makes it, 14.8% year-to-date.
    • Nasdaq was up even more, 3.2% last week, 30% year-to-date.
    • Five weeks in a row in which stocks have been up. 
  • The Federal Reserve meeting last Wednesday, there was an agreement to stop the interest rate hike. 
    • Chairman Powell commented it might take a couple years before they start lowering interest rates. 
  • Economic Data:
    • Producer Price Index (PPI) declined month over month by 0.3%. 
      • Positive indicator that CPI will continue to come down. 
    • Core inflation came down to its lowest level since November 2021. 
      • It is not coming down as headline CPI (driven by energy and food prices, for instance). 
    • Why has the economy been more resilient than expected? 
      • Look at household savings – the extra savings that we saw during COVID are still working their way through the system. 
      • Households are running down their excess savings, but there’s still about $1.2 trillion of those excess savings.  

What to look out for this week: 

  • Chairman Powell will testify in the House and the Senate. 
  • Flash U.S. PMI for manufacturing and services. 

Stay tuned for next week. 

– Andres

Disclosure: This material provided by Zoe Financial is for informational purposes only.  It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Nothing in these materials is intended to serve as personalized tax and/or investment advice since the availability and effectiveness of any strategy is dependent upon your individual facts and circumstances. Zoe Financial is not an accounting firm- clients and prospective clients should consult with their tax professional regarding their specific tax situation. Opinions expressed by Zoe Financial are based on economic or market conditions at the time this material was written.  Economies and markets fluctuate.  Actual economic or market events may turn out differently than anticipated.  Facts presented have been obtained from sources believed to be reliable.  Zoe Financial, however, cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. 

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