June 03, 2024

Stocks Post Weekly Declines

Latest Publications Stocks Post Weekly Declines

Rate Cut Expectations Slip

U.S. stocks struggled last week, with a late-day Friday rally trimming losses on the holiday-shortened trading week. Hawkish comments from Fed officials were last week’s major overhang with markets now pricing in around 0.50% of potential 2024 rate cuts. Sentiment brightened on Friday after the Fed’s preferred inflation gauge, the core personal consumption expenditures (PCE) price index excluding food and energy, was up just 0.2% in April, matching expectations. Core PCE prices are up 2.8% from a year ago, topping estimates by just 0.1%. Separately, the second of three estimates of first quarter GDP growth was downwardly revised to 1.3% from 1.6% and notably lower than 3.4% growth in Q4 2023.

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The Weekly Recap is published by Cetera Investment Management LLC, an SEC registered adviser owned by Cetera Financial Group. Cetera Investment Management provides market perspectives, portfolio guidance, model management, and other investment advice to its affiliated broker-dealers, dually registered broker-dealers and registered investment advisers.