Markets
Stocks pushed through another volatile summer week as diverging Q2 corporate reports and the Fed’s interest-rate decision whipsawed prices.
The Standard & Poor’s 500 Index rose 1.05 percent, while the Nasdaq Composite Index advanced 1.59 percent. The Dow Jones Industrial Average added 1.04 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, increased 2.13 percent.¹˒²
Tech Stocks Steal the Spotlight
Chip stocks were under pressure at the start of the week as investors worried about fresh competition from China and higher-than-expected AI capital expenditures. However, the Dow pushed higher as oil prices declined and investors rotated out of technology.³˒⁴
On Wednesday, the Federal Reserve announced that it was holding interest rates steady, a move that was initially well received by the markets. However, as the day progressed, selling picked up as investors expressed concern that the Fed was not doing enough to combat inflation.⁵
Markets rebounded on Thursday, with semiconductor and big-tech stocks leading the way. The Nasdaq rose nearly 3 percent, ending its six-day losing streak.⁶˒⁷
Momentum from Thursday’s rally extended into Friday. Markets rose at the open despite diverging Q2 earnings results from two influential technology companies. While it was not a straight line, all three major averages built on their gains throughout the day and ended the week higher.⁸
Fed Watch
The Federal Open Market Committee voted 9–3 to hold interest rates steady. Nine members voted to hold rates, while three voted to increase them.
The decision to hold rates was initially met with enthusiasm, but traders became increasingly unsettled as the day progressed.
At the Fed’s press conference, Chair Kevin Warsh explained the decision, but some investors remained concerned that the Fed was underestimating inflation.
The next scheduled two-day Fed meeting ends on September 16, so traders will have plenty of economic reports to review as they assess the overall direction of consumer prices.
INVESTING RISK DISCLOSURE
Keep in mind that investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money. Before investing, consider the funds’ investment objectives, risks, charges, and expenses. Contact Mahoney Asset Management for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
IMPORTANT CONSUMER INFORMATION
This web site has been prepared solely for informational purposes. It is not an offer to buy or sell any security; nor is it a solicitation of an offer to buy or sell any security.This site and the opinions and information therein are based on sources which we believe to be dependable, but we can not guarantee the accuracy of such information.
Representatives of a broker-dealer or investment adviser may only conduct business in a state if the representatives and the broker-dealer or investment adviser they represent: (a) satisfy the qualification requirements of, and are approved to do business by, the state; or (b) are excluded or exempted from the state’s licenser requirements.
An investor may obtain information concerning a broker-dealer, an investment advisor, or a representative of a broker-dealer or an investment advisor, including their licenser status and disciplinary history, by contacting the investor’s state securities law administrator.
The financial calculator results shown represent analysis and estimates based on the assumptions you have provided, but they do not reflect all relevant elements of your personal situation. The actual effects of your financial decisions may vary significantly from these estimates–so these estimates should not be regarded as predictions, advice, or recommendations. Mahoney Asset Managment does not provide legal or tax advice. Be sure to consult with your own tax and legal advisors before taking any action that would have tax consequences.
SECURITIES: ARE NOT FDIC-INSURED/ARE NOT BANK-GUARANTEED/MAY LOSE VALUE
This information is intended for use only by residents of CA, CT, DC, FL,, MA, MD, MN, NC, NJ, NY, OH, PA, and VA. Ken Mahoney may only conduct securities business with residents of the states and/or jurisdiction for which they are properly registered.
Securities offered through Newbridge Securities Corporation, member FINRA, SIPC.
Investment Advisory services through NFSG Corporation an SEC Registered Investment Advisor.
Office of Supervisory Jurisdiction: 1200 N. Federal Hwy., Ste. 400, Boca Raton, FL 33432. Phone 954.334.3450 Fax 954.489.2390
Specific recommendations can only be based on review of a number of suitability factors including but not limited to the investors financial profile, investment objectives, risk tolerance and the investors review of appropriate offering documents. Past performance is no guarantee of future results. To help you make informed decisions, we provide you with essential disclosures, such as Regulation Best Interest (Reg BI), the Client Relationship Summary (CRS), and Form ADV. Linked sites are strictly provided as a courtesy. Newbridge Securities, Inc. does not guarantee, approve nor endorse the information or products available at the sites, nor do links indicate any association with or endorsement of the linked sites by Newbridge Securities.
