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1/22/24 Weekly Market Commentary

1/22/24 Weekly Market Commentary

January 22, 2024

What happened last week…         

The S&P 500 closed at an all-time high of 4,839.81 where the technology sector led the way with a weekly gain of more than 4%. The S&P 500 has made gains in back-to-back weeks and is up 1.47% on the year.

 

Congress passed a bipartisan bill to extend government funding prior to the deadlines of January 19 and February 2, which have been pushed to March 1 and March 8. The Senate voted 77-18 while the House passed the legislation by a vote of 314-108. The temporary funding is the third instance since last September as Congress continues to stall on passing a full year of government spending.

 

Markets are keen to pinpoint when the Federal Reserve may implement interest rate cuts this year, with decisionmakers projecting three quarter-point reductions throughout this year. Atlanta Federal Reserve President Raphael Bostic, a voting member on the Federal Open Market Committee, in a recent speech said he moved up his projected timeline of the first cut to the third quarter from the fourth quarter. According to the CME FedWatch Tool, as of January 19, there is a 50.0% probability the Fed will cut rates at its March 20 meeting. The next meeting, and the first of the year, takes place on January 31 where rates are expected to remain unchanged at 5.25% to 5.50%.

 

According to Bloomberg, the U.S. Department of Justice could file its antitrust lawsuit against Apple (AAPL) as soon as March. The case, which has been in the works since 2019, is said to “allege that Apple has imposed software and hardware limitations on its iPhones and iPads to impede rivals from effectively competing.”

 

Existing home sales for December missed expectations (3.82 million) as it decreased to 3.78 million from 3.82 million, making it the lowest reading since August 2010 (3.68 million).

 

This week…

 On Thursday, the GDP growth rate (first estimate) for Q4 2023 is expected to decrease to 2.0% from the previous quarter’s reading of 4.9%, which was the highest reading since Q4 2021.

 

On Thursday, new home sales for December are expected to increase to 640,000 from 590,000, which was the lowest reading since November 2022 (582,000).

Thanks for Reading!


- The Rockline Team

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities.

S&P 500 Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.