Weekly Market Commentary

Rally caps were waving. 

 In recent weeks, investors have embraced the idea that economic data will persuade the Federal Reserve to slow the pace of rate hikes. Last week’s inflation data fanned their enthusiasm. 

The strength of the United States economy continues to surprise.

Investors thought they heard a dovish note from the Federal Reserve and markets rallied.

A lot of people are worried that a recession may be in our future. Some think it may already be here.

Unemployment is low (3.6 percent), and inflation is high (9.1 percent). Both tend to occur when an economy is experiencing strong growth. That makes it difficult to believe the United States is in a recession, but some data is pointing that way. 

Nobody is happy, but Americans are feeling more optimistic.

Rising inflation is a bit like a child throwing a temper tantrum in the grocery store.

The fight against inflation intensified.

Last week, the Federal Reserve (Fed) delivered a message that it is serious about fighting inflation. The Federal Open Market Committee (FOMC) lifted the federal funds target rate by 0.75 percentage points. The fed funds rate is now 1.50 percent to 1.75 percent.

Inflation is proving to be far more tenacious than markets had hoped.

How strong is the United States economy?

That’s the question investors were mulling after last week’s jobs report.

Investors reassessed and markets bounced.

Last week, major U.S. stock indices moved higher for the first time in weeks. The Dow Jones Industrial Average gained 6.2 percent, the Standard & Poor’s 500 Index was up 6.6 percent, and the Nasdaq Composite rose 6.9 percent, reported Ben Levisohn of Barron’s.