Market Commentary, 08/27/18
Last week U.S. stocks finished broadly higher: with the Dow up 0.5%, the S&P 500 gaining 0.8%, and the Nasdaq finishing up 1.6%. In fact, the S&P 500 closed at an all-time high surpassing its previous high watermark set on January 26, 2018.
Wednesday the bull market crossed a historic threshold when it became the longest bull market ever, surpassing the 9 ½ year-long rally that ended in 2000. The current bull market dates back to March of 2009, as stocks began recovering from the market’s low point during the financial crisis. Since that time the S&P 500 has more than quadrupled.
As we mentioned last week, the Fed Chairman spoke on Friday at the Jackson Hole Fed Symposium. During the meeting Chairman Powell affirmed that the Fed expects to continue gradual interest rate increases as long as inflation is stable and unemployment is falling. In the short-term, the Fed signaled broad support for another interest-rate hike in September, which will be the third of the year. The Fed’s message largely reassured investors that the U.S. economy looks strong, pushing the stock market broadly higher on Friday. (www.wsj.com)
Trade talks with China failed to yield any progress toward ending tariffs last week. According to the Trump Administration, the Chinese delegation is not bringing any significant compromises to the table. As a result each of the world’s largest economies implemented $16 billion in imports on each other, bringing the total value of goods subject to tariffs to about $100 billion. (www.bloomberg.com)
On positive trade news, President Trump announced The United States-Mexico Trade agreement this morning. It is expected that Canada will be brought in to finalize a revamp of the North American Free Trade Agreement (NAFTA) immediately.
The positive economic news continues to drive the stock market forward with both the S&P 500 and the tech heavy Nasdaq closing Friday at new highs. Today the Nasdaq eclipsed the 8,000 mark for the first time ever and the Dow is back above 26,000 for the first time since February 1st. Despite the stalled Chinese Trade Talks, the market appears to be poised for more growth, fueled by continued positive economic news.
Wayne Copelin, CFP®
President, Copelin Financial Advisors, Inc.
514 Brooks Street
Sugar Land, TX 77478
Phone (281) 240-2902
Fax: (281) 240-2856
Securities offered through ProEquities, Inc., a Registered Broker-Dealer and Member FINRA & SIPC Advisory Services offered through Harvest Investment Services, LLC., a Registered Investment Advisor Copelin Financial Advisors, Inc and Harvest Investment Services, LLC are independent of ProEquities, Inc.