Weekly Economic Summary - 9/24/2018Submitted by Miller Financial Group, LLC on September 24th, 2018
Another round of tariffs and lagging tech stocks are weighing on equity markets this morning after a record breaking week last week. The Dow closed in record territory on Friday after posting its biggest weekly gain since July and the S&P500 has risen in eight of the past ten trading days. Today is a different story as ten of the eleven S&P500 sectors are lower on the day.
The fear of an all-out trade war is making investors nervous as we begin a new week. Chinese officials have accused President Trump of “trade bullyism” and pushing an “America First” agenda at the cost of international relations. These comments came after the recent round of tariffs on over $200 billion worth of Chinese goods. China has countered with tariffs on over $60 billion of U.S. goods.
In economic news, the Federal Reserve is scheduled to meet this week and is expected to announce an interest rate increase. Fed Chairman Jerome Powell will hold a news conference on Wednesday and close attention will be paid to the Fed’s insight on the state of the economy and the impact of trade issues.
Hong Kong stocks are falling today over concerns of a trade war and the negative trend is pulling most European shares lower. Interest rates are flat and gold is higher, being viewed as a perceived safe haven in the early going.
Have a great week and enjoy this beautiful Oregon fall weather!