• Kevin Hurley

MarketBites: Meme Stock Disaster

Updated: Sep 27

MARKET PERFORMANCE:
 

Portfolio Manager Commentary:


The markets cooled off Wednesday, clawing back at recent gains across the board. The S&P 500, Dow Jones Industrial Average, and Nasdaq all finished in the red at -0.72%, -0.50%, and -1.25%, respectively. The Federal Reserve’s meeting minutes provided slight comfort to investors by suggesting they will keep raising rates while being sensitive to the risk of going too far.

The Dow and S&P rose minutes after the minutes were released but quickly retreated back down after unfavorable earnings reports from large retailers such as Target. Target’s profit fell 90% as they have struggled with a massive stockpile of excess inventory.

A new report from J.P. Morgan strategists predicts that global inflation will halve to 4.7% in the second half of 2022, with U.S. inflation decreasing to an annualized rate of 3%. Western Europe, on the other hand, is forecasted to have an 8% annualized rate due to rising natural gas prices, which could lead to a recession. In the U.K., consumer price inflation hit 10.1% which is the fastest increase among G7 countries since the beginning of 2021.

Chart of the Day:

A severe drought and some of the hottest weather on record have scorched fields and driven a historically high level of abandonment in the Southwest.

Source: WSJ

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