From Our Point of View

This week’s market update highlights strong labor market data and ongoing global uncertainties as Q4 begins. September’s nonfarm payrolls added 254,000 jobs, reducing unemployment to 4.1%, which has tempered expectations for large Federal Reserve rate cuts. Oil prices surged over 10% due to Middle East tensions, though energy markets remain volatile. Markets gained stability following the resolution of the East Coast port strike, which briefly disrupted operations. Key inflation data and Fed minutes this week will provide further direction amid these geopolitical risks.

September saw equities defy historical trends with a strong performance, buoyed by the Fed's unexpected 50 basis point rate cut and substantial fiscal support from China. The S&P 500 rose 2.1%, with consumer-focused sectors leading. Despite mixed economic data, the labor market showed resilience, and inflation continued to slow. As the Fed maintains a neutral stance, market risks, including inflation and high valuations, remain. Freedom Family Office’s CIO, Kyle Cain, discusses the potential market impact and strategies to capitalize on opportunities.

U.S. equities posted strong gains as tech stocks, fueled by renewed AI enthusiasm, led the charge. International markets also rallied, with Europe benefiting from rate cut expectations and China seeing its best stock performance in over a decade. Meanwhile, inflation continues to cool, signaling that the Fed's recent rate cut is taking effect.

U.S. equities rallied following a 50 basis point Fed rate cut, with the S&P 500 hitting new highs. International markets responded cautiously to central bank decisions, while strong retail sales signal solid Q3 growth.

This week, U.S. equities bounced back, led by a 5% surge in technology stocks, while international markets lagged. The bond market anticipates Fed rate cuts, and commodities rallied amid easing inflation. Stay ahead with a comprehensive overview of key market trends and economic insights.

Markets in August experienced volatility, with the S&P 500 dropping 8.5% before rebounding as economic data showed resilience. Despite weaker jobs numbers and rising unemployment, inflation decelerated, and earnings growth remains a key driver. We adjusted portfolios to balance risk and take advantage of buying opportunities amid expectations of rate cuts and slowing inflation.