https://finance.yahoo.com/news/stocks-post-best-month-since-2022-as-investors-look-ahead-to-rate-cuts-211309899.html
https://finance.yahoo.com/news/inflation-hits-lowest-level-since-2021-feds-preferred-gauge-shows-133230834.html
Thursday, November 30, 2023
Good Month for Stocks and Inflation - Interest rates set to drop early-mid 2024
The past month has been great for the stock market as the S&P 500(8.9%), NASDAQ(10.9%), and Dow Jones have all had their best month this year. Even lagging industries had very good months. Inflation has also hit a low since 2021. Consumer spending expenditure (CPE) grew 3% this month slowing down from 3.4% last month. Along with CPI, CPE is a leading indicator of inflation. This has led to the likeliness of cuts in the interest rates by June next year to increase 32% from last month. Making it a 92% chance currently. These go against last years forecasts of a possible recession, showing that the predictions are not always accurate. Therefore the predictions for next year are not guaranteed.
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It is relieving knowing that the stock market is doing well, and that inflation is finally seeing a low point. This may be beneficial and stating that our economy is finally reaching a resting period where interest rates may begin to fall which would likely improve another recession from occurring. This is a positive outlook on the future of the economy which I can appreciate.
ReplyDeleteThis is good news and likely means it is a good time to invest. The cut to interest rates was likely a factor that influenced more consumer spending which has been helping the stock market. I wonder how this will affect economists thinking as this goes against their idea of an expected recession.
ReplyDeleteIt is great to see the stock market having a good month. It seems to be a great time to invest.
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