March 12, 2024

Market Minute Week of March 11, 2024

Market Minute March 11

Welcome to the “Market Minute” series! In this weekly blog post, Dave provides you with all the latest updates on market and economic trends that you need to stay on top of.

Stock Market

US markets were down last week while developed international stocks and emerging markets performed quite well. The MSCI EAFE index of developed international stocks posted a gain of 2.3%.

The Wall Street Journal reported over the weekend that the stock market rally has been broadening out over the past few weeks. “Almost one-fifth of the stocks in the index hit a new 52-week high” recently, showing higher participation than we’ve seen since early 2021. This shift away from a handful of large tech companies to a broader spectrum is a good sign that investors are gaining confidence in the economy overall. A broad-based rally is much less fragile than one driven by one sector.

Job Report

Friday’s jobs report showed the showed continued growth in February, while wage growth cooled, an important signal for continued inflation easing. Morningstar reported it was a very Goldilocks assessment, “with neither signs of a recession nor the kind of acceleration in growth that could prevent the Federal Reserve from cutting rates.”

Interest Rates

The expectation is that the Federal Reserve will begin reducing interest rates in June.

Upcoming Week

  • The Consumer Price Index report is due on Tuesday and the Producer Price Index is due on Thursday, both updating the inflation story.
  • Tech company Oracle reports earnings on Monday, giving further insight into valuation and earnings growth for big tech.
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