Weekly Economic Update: August 23rd, 2022

Presented by Nicholas Wealth Management

August 23rd, 2022

 

Weekly Market Update

In this week’s recap: Markets tap the brakes but hold fast against downbeat news.

 

The Week on Wall Street

Stocks tumbled on Friday, sending stocks to a weekly loss after an otherwise quiet August week of trading.

The Dow Jones Industrial Average slipped -0.16%, while the Standard & Poor’s 500 lost 1.21%. The Nasdaq Composite index declined 2.62% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, fell 0.88%.1,2,3

 

Summer Rally Hits Pause Button

The market rally that began in mid-June paused last week. Despite the week’s losses, stocks exhibited resiliency in the face of a string of troubling economic news that included flat retail sales, weak housing numbers, an inversion in the yield curve, and tepid economic data out of China.

Nevertheless, stocks tumbled on Friday amid hawkish comments about future rate hikes, rising bond yields, and ahead of the annual meeting of global central bankers in Jackson Hole, Wyoming, in which Fed Chair Jerome Powell is scheduled to speak on August 26th.  

 

Expect More Rate Hikes

Minutes from July’s Federal Open Market Committee meeting indicated that additional rate hikes would be needed to help manage inflation. Fed officials did acknowledge that further rate hikes risked unintended economic weakness because of the time it takes for higher rates to work through the economy. The committee indicated that they might slow rate hikes to determine the impact of previous rate increases.4

The minutes also contained the Fed’s latest economic forecasts, which projected inflation to decline faster than its June estimate due to a bigger economic slowdown in the year’s second half. 5

 

Tip of the Week

We all have impulses that can make us spend more and save less. Recognizing them can help us to improve our financial behaviors.

 

Radio

Retire Ready with David Nicholas airs every Saturday at 6:00 PM on 95.5 WSB. Be sure to tune in this weekend! If you missed this past weekend’s show, CLICK HERE to listen!

 

Media

Be sure to subscribe to our YouTube page for all of David’s media commentaries CLICK HERE!

The stock market ➡️ Continuing its summer rally. The bond market ➡️ Predicting a slowdown. David joined Charles Payne on Fox Business last Thursday, 8/18, to discuss this problem and why they both can’t be right.

 

 

CITATIONS:

  1. The Wall Street Journal, August 19, 2022
  2. The Wall Street Journal, August 19, 2022
  3. The Wall Street Journal, August 19, 2022
  4. The Wall Street Journal, August 17, 2022
  5. The Wall Street Journal, August 17, 2022

Please consult your financial professional for additional information.

This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG is not affiliated with the named representative, financial professional, Registered Investment Advisor, Broker-Dealer, nor state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security.

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Madison Luck

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