After seeing the S&P 500 rally over 5% in the wake of the still-undecided midterm elections, late this week stocks sold off sharply after renewed tough talk from the Federal Reserve.
St. Louis Federal Reserve President James Bullard suggested the central bank’s interest rate hikes have thus far had “limited effects” on inflation, causing Wall Street to interpret his words as more aggressive hikes looming.
The Nasdaq also felt the effects of the Fed. After rallying 14% over the past month, the index shed nearly 3% over the past five trading sessions. This compounded an already abysmal year for Big Tech, with companies like Meta Platforms (META) and Amazon.com (AMZN) recently announcing combined layoffs of 20,000 workers.
Despite this week’s Producer Price Index report showing a smaller increase in wholesale prices, other macroeconomic data continue to suggest a prolonged bear market and an imminent recession.
Mortgage rates plunged nearly half a percentage point this week, the largest such decrease in 41 years, as Fannie Mae’s Home Purchase Sentiment Index showed its eighth-consecutive monthly decline.
The University of Michigan’s Surveys of Consumers showed a reading of 54.7 for November, down 8.7% from the previous month as sentiment continues to sour.
However, despite the abundance of bad news this week, our team of editors and analysts have ideas about where investors can turn as challenging conditions persist.
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3 Truths to Combat Financial Fake News
As a nation, we’ve largely lost sight of what distinguishes fact from opinion. However, as Managing Editor Jordan Chussler explains, being able to separate fact from opinion makes you a more informed investor. And informed investors are better investors.
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VIDEO: A Disinflationary Wave Is in Motion
A disinflationary wave has been building, and key indicators show which industries are benefiting. In this segment, Financial News Anchor Jessica Borg interviews Senior Analyst Tony Sagami about where the market is, where it’s heading and if a Santa Claus rally is in the cards.
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Grab This Slice of the Market Pie
Whether you’re new to trading or a seasoned investor, fractional investing allows you to buy stock and other high-priced assets on the cheap. Editorial Director Dawn Pennington discusses how purchasing partial shares can be a pathway to investing in alternative asset classes or simply a means of getting started for investors with lower risk tolerance.
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After Midterm Distraction, Back to Inflation
Regardless of which side of the political fence you sit on, the midterm elections left just about everyone in limbo. Kenny Polcari, analyst and host of Wealth & Wisdom, breaks down the near deadlock in the House and Senate, and what it means for Wall Street, the markets, the economy and investors like you.
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Risky & Reckless Government Spending
The government is continuing to spend with no end in sight, and the risks it poses could be grave. Last month, our national deficit reached $31 billion. The cost of just paying interest on that debt now exceeds America’s annual defense spending. Senior Editor Tony Sagami reports on the looming crisis this is causing and the fallout it could have for the markets.
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VIDEO: Market Minute with Kenny Polcari
On Tuesday, we received the Producer Price Index data, which showed wholesale prices rising 0.2% — less than expected as inflation continues to ease. In this week’s video, Kenny Polcari, host of Wealth & Wisdom, breaks down export prices, industrial production, housing starts and more.
Until next time,
Jordan Chussler
Managing Editor
Weiss Ratings Daily
