Hello,

Markets are doing their thing again, so let’s discuss.

We’ve seen a global sell-off the last couple days following the latest job report.

The VIX, often described as the market’s “fear gauge,” has surged to its highest level since early 2023.

Investors are increasingly worried about a possible recession.
 

What happened?

• Concerns over the timing of Fed rate cuts
• Weakening labor market
• Disappointing tech earnings

To learn more about recent stock market swings, check out our special report for some perspective and analysis.
 

Read our special report

Don’t want to read the report?

No problem. We’re on top of it so you don’t have to be.

What’s most important is to remember that market pullbacks happen all the time.

We're dealing with a lot of uncertainty and investors are feeling cautious.

However, that doesn't mean that we should panic and rush for the exits.

We expected volatility and we're prepared.

What should you do now?

Have trust in your financial plan and know that you have a team of professionals looking after you.

We’re watching markets closely and we’ll be in touch if we need to make some changes.

Any questions or concerns? Just hit “reply” and let us know. We’re here to help.

Reliably,

Your Eagle Wealth Team

The Week on Wall Street

Stocks fell broadly last week as investors looked past upbeat Fed comments and focused on disappointing corporate reports and weaker-than-expected economic data.

The Dow Jones Industrial Average lost 2.20 percent, while the Standard & Poor’s 500 Index fell 2.06 percent. The Nasdaq Composite Index dropped 3.35 percent. By contrast, the MSCI EAFE Index, which tracks developed overseas stock markets, gained 0.19 percent for the week through Thursday’s close.¹
 

Volatile Week of Trading

Stocks were under pressure early in the week as investors appeared to focus on the Fed’s meeting, which ended on Wednesday. It was a big week for Q2 corporate reports, with five of the ten largest names in the S&P 500 (by market capitalization) reporting numbers. But attention was mainly on the Fed’s meeting.^2,3

Stocks rallied on Wednesday when Fed Chair Powell indicated a September interest rate cut was “on the table."⁴

But selling picked up on Thursday as investors' attention quickly shifted to disappointing corporate reports and weak economic data. Friday morning's disappointing June jobs report raised even more concerns about the economy's strength. The Nasdaq ended the week in correction territory, down more than 10 percent from its recent all-time high.^5,6
 

Economic Concerns

Fresh economic data suggested weakening manufacturing, construction, and employment outlooks. On Friday, the Labor Department’s July jobs report showed a sharper-than-expected job growth slowdown and an unemployment uptick to 4.3 percent—the highest rate in 2½ years.

At Wednesday’s Fed press conference, investors welcomed Powell’s unusually candid and upbeat comments. However, as the week progressed, investors started questioning whether the Fed was misreading the economy and moving too slowly in adjusting interest rates.⁷
 

^{Source: YCharts.com, August 3, 2024. Weekly performance is measured from Monday, July 29, to Friday, August 2.  TR = total return for the index, which includes any dividends as well as any other cash distributions during the period.  Treasury note yield is expressed in basis points.}

Sources:

^{1. The Wall Street Journal, August 2, 2024}

^{2. The Wall Street Journal, August 2, 2024}

^{3. S&P Global, July 31, 2024}

^{4. The Wall Street Journal, July 31, 2024}

^{5. The Wall Street Journal, August 1, 2024}

^{6. CNBC.com, August 2, 2024}

^{7. The Wall Street Journal, August 2, 2024}

^{Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.}

^{The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.}

^{The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.}

^{The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.}

^{U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid. Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.}

^{International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.}

^{Please consult your financial professional for additional information.}

^{This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG is not affiliated with the named representative, financial professional, Registered Investment Advisor, Broker-Dealer, nor state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security.  Copyright 2024 FMG Suite.}