Economy
The annual inflation rate fell to 3.4%, down from 3.5% the previous month. Core inflation, which removes food and energy prices from the mix, also fell last month coming in at 2.5%. The muted inflation report could give the Fed a bit more breathing room with respect to making a decision on raising rates in September or leaving them unchanged yet again. Before that decision is made, we'll have a few more important economic data reports that will drop, including August's jobs and inflation numbers. Those readings could go a long way to setting the stage for the debate just over a month from now.
Markets
The S&P 500 rose 0.36% this week, logging a third straight week of gains for the index. The subdued inflation reports this week paired with the soft jobs report from last week has bond traders pricing in the Fed leaving rates unchanged next month, easing some short-term uncertainty in the stock market. We've also had the vast majority of companies report on last quarter's earnings, so most of the hay is in the barn there. We're still a little over a week away from hearing from Nvidia, but at this point we've heard from their customers and the spending on AI infrastructure theme is still in play.
What We're Reading
- The Lakers Sale and the Game Above the Game - The Ringer
- The Four Seasons of Retirement - Jordan Grumet
Have a great weekend.
Dogwood Wealth Management