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Weekly Market Update, Week Ending June 7, 2024

Weekly Market Update, Week Ending June 7, 2024

June 09, 2024

Market-Moving News[i]

New records

U.S. stock indexes rebounded from a modest setback the previous week as the NASDAQ and the S&P 500 eclipsed record highs set last month. Renewed enthusiasm over artificial intelligence lifted technology stocks, and the NASDAQ’s 2.4% weekly return outpaced the more modest gains for the S&P 500 and Dow.

Labor market resilience

May’s jobs growth figure of 272,000 came in well above most economists’ forecasts for around 180,000 and wage growth also exceeded expectations, further complicating the outlook for a potential interest-rate cut this year. Government bond yields rose following Friday morning’s report and stocks were little changed.   

Growth style leadership

After lagging the previous week, a U.S. large-cap growth index outperformed its value counterpart by a wide margin, extending the growth style’s year-to-date leadership. The growth index returned about 2.7% for the week while the value benchmark was down 0.8%.

Yield volatility

The yield of the 10-year U.S. Treasury bond fell on Thursday to its lowest level in more than two months, but the yield drop quickly reversed course in the wake of Friday’s stronger-than-expected jobs report. After closing on Thursday at 4.28%, the 10-year note’s yield climbed to 4.43% on Friday. 

Europe’s rate cut lead

As the U.S. Federal Reserve considers whether to begin cutting interest rates later this year, the European Central Bank approved its first such reduction since 2019. Policymakers cited recent progress in reducing inflationary pressures as they approved a quarter-point rate cut affecting the 20 countries that use the euro currency.

Slippery oil

The price of U.S. crude oil fell below $73 per barrel on Tuesday to its lowest level in four months after a consortium of oil-producing countries announced plans for a more gradual phase-out of production cuts. The price recovered somewhat to more than $75 per barrel on Friday, but it was still well below a recent high of nearly $88 in early April. 

Lagging small caps

An index that tracks U.S. small-cap stocks lagged its large-cap counterpart by a wide margin again, extending a recent run of underperformance for smaller stocks. Since a recent high on May 15, the small-cap benchmark was down 3.7% as of Friday's close; its large-cap counterpart was up 0.3%.

Busy week ahead

The new week will bring a U.S. Federal Reserve policy meeting that concludes on Wednesday and an inflation report set to be released that morning. The Fed is widely expected to keep interest rates unchanged; the Consumer Price Index report will show how May’s annual inflation rate compared with April’s 3.4% figure.

The Week Ahead:  June 10-14

  • Monday
    • No major reports scheduled
  • Tuesday
    • Small Business Optimism Index, National Federation of Independent Business
  • Wednesday
    • U.S. Federal Reserve Board concludes two-day policy meeting, Chair Jerome Powell holds press conference
    • Consumer Price Index, U.S. Bureau of Labor Statistics
    • Federal budget, U.S. Department of the Treasury
  • Thursday
    • Producer Price Index, U.S. Bureau of Labor Statistics
    • Weekly unemployment claims, U.S. Department of Labor
  • Friday
    • University of Michigan Index of Consumer Sentiment, preliminary result
    • Export and import prices, U.S. Bureau of Labor Statistics

Philosophy Quote of the Week[ii] 

You can do it 

“If you find something very difficult to achieve yourself, don’t imagine it impossible – for anything possible and proper for another person can be achieved as easily by you."

 Marcus Aurelius, Meditations, 6.19

 

Tax Tips[iii]

It’s wedding season – let’s talk weddings, marriage and taxes

If you’re walking down the aisle, take a look at this checklist of TAX matters to consider:

  • If you’re changing your name, don’t forget to do it with the Social Security Administration
  • If you move, formally change your address – with the IRS, your bank, your employer and others
  • Your marital status, as of the last day of the year, determines your tax filing status
  • Do a health insurance review. This helps if you receive premium assistance through advance payments of premium tax credit via a health insurance provider or marketplace.  Don’t forget to ensure the marketplace knows you are married!
  • Other changes that should be reported to health providers or the marketplace include birth of adoption of a child, divorce, employment changes, moving, and anything that affects family composition, size, income or your enrollment
  • Life events, such as getting married, allow for special enrollment periods for items like work benefits. Be sure to take advantage of that window to enroll!
  • Update your will and trust – and continue to do so annually
  • Ensure beneficiaries of life insurance policies, IRAs, and 401(k)s are updated
  • Credit scores are always single – ensure you are pulling credit reports and freezing credit/getting identity protection for both of you
  • Pre-marriage tax issues remain pre-marriage – you’re responsible for your issues, your spouse isn’t!
  • Same-sex married couples will file as married filing jointly (MFJ) in most cases.

   

Health Tip of the Week[iv]

Symptoms and causes of Alzheimer’s

Overview

Alzheimer's disease is a brain disorder that gets worse over time. It's characterized by changes in the brain that lead to deposits of certain proteins. Alzheimer's disease causes the brain to shrink and brain cells to eventually die. Alzheimer's disease is the most common cause of dementia — a gradual decline in memory, thinking, behavior and social skills. These changes affect a person's ability to function.

About 6.5 million people in the United States age 65 and older live with Alzheimer's disease. Among them, more than 70% are 75 years old and older. Of the about 55 million people worldwide with dementia, 60% to 70% are estimated to have Alzheimer's disease.

The early signs of the disease include forgetting recent events or conversations. Over time, it progresses to serious memory problems and loss of the ability to perform everyday tasks.

Medicines may improve or slow the progression of symptoms. Programs and services can help support people with the disease and their caregivers.

There is no treatment that cures Alzheimer's disease. In advanced stages, severe loss of brain function can cause dehydration, malnutrition or infection. These complications can result in death.

Symptoms

Memory loss is the key symptom of Alzheimer's disease. Early signs include difficulty remembering recent events or conversations. But memory gets worse and other symptoms develop as the disease progresses.

At first, someone with the disease may be aware of having trouble remembering things and thinking clearly. As symptoms get worse, a family member or friend may be more likely to notice the issues.

Brain changes associated with Alzheimer's disease lead to growing trouble with:

Memory

Everyone has memory lapses at times, but the memory loss associated with Alzheimer's disease persists and gets worse. Over time, memory loss affects the ability to function at work or at home.

People with Alzheimer's disease may:

  • Repeat statements and questions over and over.
  • Forget conversations, appointments or events.
  • Misplace items, often putting them in places that don't make sense.
  • Get lost in places they used to know well.
  • Eventually forget the names of family members and everyday objects.
  • Have trouble finding the right words for objects, expressing thoughts or taking part in conversations.

Thinking and reasoning

Alzheimer's disease causes difficulty concentrating and thinking, especially about abstract concepts such as numbers.

Doing more than one task at once is especially difficult. It may be challenging to manage finances, balance checkbooks and pay bills on time. Eventually, a person with Alzheimer's disease may be unable to recognize and deal with numbers.

Making judgments and decisions

Alzheimer's disease causes a decline in the ability to make sensible decisions and judgments in everyday situations. For example, a person may make poor choices in social settings or wear clothes for the wrong type of weather. It may become harder for someone to respond to everyday problems. For example, the person may not know how to handle food burning on the stove or decisions when driving.

Planning and performing familiar tasks

Routine activities that require completing steps in order become a struggle. This may include planning and cooking a meal or playing a favorite game. Eventually, people with advanced Alzheimer's disease forget how to do basic tasks such as dressing and bathing.

Changes in personality and behavior

Brain changes that occur in Alzheimer's disease can affect moods and behaviors. Problems may include the following:

  • Loss of interest in activities.
  • Social withdrawal.
  • Mood swings.
  • Distrust in others.
  • Anger or aggression.
  • Changes in sleeping habits.
  • Loss of inhibitions.
  • Delusions, such as believing something has been stolen.

Preserved skills

Despite major changes to memory and skills, people with Alzheimer's disease are able to hold on to some skills even as symptoms get worse. Preserved skills may include reading or listening to books, telling stories, sharing memories, singing, listening to music, dancing, drawing, or doing crafts.

These skills may be preserved longer because they're controlled by parts of the brain affected later in the course of the disease.

When to see a doctor

A number of conditions can result in memory loss or other dementia symptoms. Some of those conditions can be treated. If you are concerned about your memory or other thinking skills, talk to your health care professional.

If you are concerned about thinking skills you observe in a family member or friend, talk about your concerns and ask about going together to talk to a health care professional.

 


[i]https://www.jhinvestments.com/weekly-market-recap#investment-returns, accessed 06.07.2024.

[ii] Holiday, Ryan.  The Daily Stoic:  366 Meditations on Wisdom, Perseverance, and the Art of Living.  Kindle edition, page 176.  Accessed 06.07.2024.

[iii] Hockensmith, Robert F.  52 Ways to Outsmart the IRS, Weekly Tax Tips to Save You Money.  Kindle edition, pages 100-102, accessed 06.07.2024.

[iv]https://www.mayoclinic.org/diseases-conditions/alzheimers-disease/symptoms-causes/syc-20350447.  Accessed 06.07.2024.