Presented by Nicholas Wealth Management
October 18th, 2022
Weekly Market Update
In this week’s recap: Volatility reigns; inflation remains unchecked.
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Last Week on Wall Street
Stocks were mixed last week amid wide intra- and inter-day price swings, as technology shares bore the brunt of the downdraft.
The Dow Jones Industrial Average gained 1.15% for the week. Meanwhile, the Standard & Poor’s 500 slipped 1.55%, and the Nasdaq Composite index dropped 3.11%. The MSCI EAFE index, which tracks developed overseas stock markets, lost 2.48%.1,2,3
Breathtaking Volatility
An above-consensus consumer inflation number sent stocks tumbling in early Thursday trading before inexplicably surging higher in a stunning reversal that saw the Dow Jones Industrial Average rally 1,500 points from its intraday low. Before reversing, stocks had touched levels last seen in 2020. Friday surrendered much of the previous day’s gains, sending stocks mostly lower for the week. 4
The stock market began the week on a volatile note, with the Nasdaq hitting a two-year low. Recession fears and new export controls may limit U.S. companies from selling advanced semiconductor chips and related manufacturing equipment to China.5
Sticky Inflation
September’s inflation reports provided little evidence that inflation was moderating meaningfully. The Producer Price Index’s first report on inflation showed a 0.4% increase in supplier prices over August and an 8.5% increase 12 months ago. While down from August’s 8.7% rise, it was higher than market expectations.6
The subsequent release of the Consumer Price Index showed consumer prices rising 0.4% in September and 8.2% year-over-year. More troubling was core inflation (excludes energy and food prices), which gained 0.6% in September and registered an increase of 6.6% from a year ago–the biggest 12-month increase since August 1982.7 Â
The Week Ahead: Key Economic Data
Tuesday: Industrial Production.
Wednesday: Housing Starts.
Thursday: Existing Home Sales. Jobless Claims. Index of Leading Economic Indicators.
Source: Econoday, October 14, 2022
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.
Tip of the Week
If you are a new parent, you have 18 years to save for your child’s university tuition. Consider opening an education account in which earnings can compound with tax deferral.
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!
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Media
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CITATIONS:
- The Wall Street Journal, October 14, 2022
- The Wall Street Journal, October 14, 2022
- The Wall Street Journal, October 14, 2022
- CNBC, October 13, 2022
- CNBC, October 10, 2022
- CNBC, October 12, 2022
- CNBC, October 13, 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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