The Week in Review: May 28, 2024
Drifting Higher
Stocks have been drifting higher for several weeks as investors search for a catalyst that could drive shares in either direction.
Interest rates can influence market direction, but there hasn't been much news recently on the rate front.
Federal Reserve officials would like to gradually begin reducing interest rates, but inflation hasn’t cooperated since the new year began.
Consequently, the Federal Reserve is comfortable maintaining its key rate, the Fed funds rate, at the current level as it seeks more clarity on potential price developments heading into and through the summer.
Meanwhile, the A.I. narrative hasn’t changed, and the economy is still expanding, although some recent indications suggest that growth may be slowing down.
However, there is not much to suggest that economic activity is about to stall.
In other words, modest economic growth and stable rates have underpinned stocks in a relatively dull rally that has the major indexes at or near all-time highs.
Market Summary
Two for the Road
As of May 22, just nine days accounted for all of the 2024 stock market’s gains. - Morningstar, May 22, 2024
About $38 billion in loans for U.S. office buildings are facing default or foreclosure, the highest number since 2012. Last year, only 35% of office building loans were repaid when they came due. - The Wall Street Journal, April 30, 2024
Please do not hesitate to contact me with any questions or concerns. I hope you have a wonderful week!
Bill Stordahl, CFP®
Managing Director
Stordahl Capital Management
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1. The Dow Jones Industrials Average is an unmanaged index of 30 major companies which cannot be invested into directly. Past performance does not guarantee future results.
2. The NASDAQ Composite is an unmanaged index of companies which cannot be invested into directly. Past performance does not guarantee future results.
3. The S&P 500 Index is an unmanaged index of 500 larger companies which cannot be invested into directly. Past performance does not guarantee future results.
4. The Global Dow is an unmanaged index composed of stocks of 150 top companies. It cannot be invested into directly. Past performance does not guarantee future results.
5. CME Group front-month contract; Prices can and do vary; past performance does not guarantee future results.
6. CME Group continuous contract; Prices can and do vary; past performance does not guarantee future results.