Market Update

This week saw market volatility continue as investors grapple with the uncertain economic outlook. Remarkably, Congress managed to avert a shutdown in the eleventh hour last week, allowing crucial economic data reports to proceed until at least November 17. However, this short-term funding deal came at a cost – Speaker Kevin McCarthy was ousted. This …

The Fed’s Attention Turns to Elevated Jobs Report Read More »

It has undeniably been a challenging week, despite the limited economic data releases. Since the start of the week, we have seen yields on the 10-year Treasury rise over 20 bps as of Thursday morning. This quick ascent has put increased pressure on mortgage rates that were still recovering from a substantial jump last week. …

A potential government shutdown could affect rates Read More »

A more hawkish Fed. That was the tone of the FOMC meeting on Wednesday. As expected, the FOMC opted to keep rates unchanged for this month. However, what caught many by surprise was the Fed’s future guidance. Twelve out of the nineteen members projected another rate hike in 2023, while the committee reduced its rate …

Has the Fed Changed Their 2024 Outlook? Read More »

This week’s economic data featured inflation reports from both the consumer (CPI) and producer (PPI) perspectives. While the headline figures showed an uptick, a significant portion of this increase can be attributed to rising energy prices, which are expected to stabilize or decrease in the coming months. As a result, this week’s data isn’t expected …

Economic data reveals competitive edge for homebuyers Read More »

The holiday-shortened week has given the markets a brief break from significant economic data. However, that doesn’t mean they took the entire week off. Earlier this week, ISM (Institute of Supply Management) data came in hotter than expected, indicating that despite recent reports signaling economic slowdowns, there are still pockets of resilience. This is further …

A rate hike is unlikely in September Read More »

Last week, we addressed the possibility of Jerome Powell maintaining a consistent stance in his Jackson Hole speech, underscoring the importance of staying on the current trajectory. In large part, this is exactly what transpired. Powell went a small step further by specifically mentioning to raise rates if the situation demands. The markets took him …

Latest jobs report will factor into fed’s September decision Read More »

It has been a relatively quiet week in terms of economic data. The market is gradually warming up to the idea of another Fed rate hike before the year’s end, with Fed Futures prices indicating a 40% chance as of Tuesday. PMI figures earlier this week were weaker than anticipated in both Europe and the …

The Fed believes the economy hasn’t cooled as expected Read More »

In last week’s Market Update, we wrote about how the market seemed to be taking a breath. Well, since then, the yield on the 10-year has increased by over 27 basis points (bps). Early this week, retail sales came in with another upside surprise, showing that the American consumer continues to spend despite increasing borrowing …

Americans Continue Spending Despite Rising Costs Read More »

After a chaotic ending the previous week, the market has taken a breather. The week began with 10-year yields around 4%, and despite the highly anticipated Consumer Price Index (CPI) report on Thursday morning, yields have remained virtually unchanged. Earlier in the week, Fed Governors on the speaking circuit reiterated their view of policy remaining …

CPI Report Indicates Possible Pause in Rate Hikes Read More »

It has been another tough week for bond yields. While there are signs that the Federal Reserve’s hiking is starting to have an impact on growth, economic data remains solid and inflation remains higher than desired. Second quarter GDP and Durable Goods Orders came in stronger than expected this week, while inflation data, although improving, …

Economic Data is Strong, But Inflation Remains Stubborn Read More »