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Market Recap

September 15, 2023

All eyes are on the upcoming Federal Reserve (Fed) meeting later this week. After raising rates for the 11th time (since March 2022) during their last meeting in July, market expectations are for a pause to rate hikes this time around.

The Fed’s meeting will focus on inflation and a recent uptick in those numbers for August. As measured by the Consumer Price Index (CPI), inflation rose to an annual rate of 3.7%, a 0.6% monthly gain and the fastest pace since mid-2022. However, in context, much of this rate was due to higher energy prices (gasoline prices surged by 10.6% month-over-month1). When food and energy are excluded, the core inflation rate rose a more modest 0.3%.2

In fact, the 3-month annualized core CPI, excluding food and energy, stands at 2.4%3, which is very close to the Fed’s stated target of 2.0%. Hopefully, we’ll have some more clarity at the conclusion of this week’s meeting. As Fed Chairman, Jerome Powell, put it in July, the Fed “is navigating by the stars under cloudy skies.”

Reviewing returns for the first half of September, the markets all posted losses. As of market close on September 15th, the Dow was down 104 points (0.3%), the S&P 500 fell 57 points (1.27%) and the NASDAQ Composite Index (NASDAQ) dropped 327 points (2.33%). 

1,3 “Weekly Market Recap; Week of September 18, 2023” September 18, 2023 “Weekly Market Recap; Week ended September 15” September 18, 2023

The views and opinions expressed herein are those of the author(s) noted and may or may not represent the views of Capital Analysts or Lincoln Investment. The material presented is provided for informational purposes only. Past performance is no guarantee of future results. No person or system can predict the market. There is no guarantee that any strategies discussed will result in a positive outcome. All investing involves risk and no investment strategy can guarantee a profit or protect against loss, including the potential loss of principal. S&P 500 Index is an index of 500 of the largest exchange-traded stocks in the US from a broad range of industries whose collective performance mirrors the overall stock market. The NASDAQ is an index that tracks the cumulative results on a market capitalization basis of all stocks trading in the NASDAQ system. The Dow Jones Industrial Average is a widely watched index of 30 American stocks thought to represent the pulse of the American economy and markets. Investors cannot invest directly in an index. Diversification does not guarantee a profit or protect against a loss.