Mid-Week Market Minute 9.11.24

Stocks Rebound; Core CPI Slightly Higher Than Consensus

Stocks rebounded in early trading this week with the S&P 500 higher by about 1.6% following last week’s steep decline. In bonds, interest rates continued their relentless move lower with the yield on the 2-year and 10-year Treasury notes trading around 3.64% and 3.66%, respectively, mid-week.

On the data front, Wednesday morning brought the Consumer Price Index (CPI) inflation report. For the most part, the report was largely in line with expectations. Headline CPI inflation increased 0.2% in August, and 2.5% on an annual basis – the lowest reading in more than three years. Core CPI, which excludes food and energy prices, came in slightly higher than consensus at 0.3% for the month and 3.2% on an annual basis. The shelter component of inflation played a large role in the above-consensus print, rising 0.5% for the month.

As we sit just one week away from the highly anticipated Fed meeting on Sept. 18, the data suggests we are nearly certain to see the Fed cut rates by 0.25%. With few key data points remaining between now and then, the potential for a more aggressive 0.50% cut is unlikely. 

Source: GSAM, CNBC, JPMorgan, FactSet

This communication is for informational purposes only. It is not intended as investment advice or an offer or solicitation for the purchase or sale of any financial instrument.

Indices are unmanaged, represent past performance, do not incur fees or expenses, and cannot be invested into directly. Past performance is no guarantee of future results.