Peace and Prosperity?
Good morning: Last week presented market rallies with all three indices in the green. The SpaceX IPO, along with the interim peace deal between the United States and Iran, also supported the indices’ appreciation. The deal called for the reopening of the Strait of Hormuz, which will release a lot of pent-up oil supply in the region. Crude prices fell to nearly pre-war levels. Last week’s Fed meeting pointed to possible rate hikes later in the year. We have gone from a rate cut to now a potential rate hike.
New Fed Chairman Warsh’s first meeting voted last week to keep the federal funds rate unchanged. This was the expected outcome, as inflationary pressures included an improving labor market. The Fed elected to play wait and see. The Strait of Hormuz is open again for commercial traffic, and pump prices are falling. It’s possible that it may hold steady, rather than moving higher or lower. Let’s hope inflation starts to decrease as it really should. This week will be relatively light for economic releases. Let there be peace and prosperity, and let the market continue its upward trend. Have a great week, and call with questions.
Regards,
Don
Wells Fargo Advisors Financial Network did not assist in the preparation of this report, and its accuracy and completeness are not guaranteed. The opinions expressed in this report are those of the author(s) and are not necessarily those of Wells Fargo Advisors Financial Network or its affiliates. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Additional information is available upon request.
Investment product and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN), Member SIPC. a registered broker-dealer and non-bank affiliate of Wells Fargo & Company. WFAFN uses the trade name Wells Fargo Advisors.
New Fed Chairman Warsh’s first meeting voted last week to keep the federal funds rate unchanged. This was the expected outcome, as inflationary pressures included an improving labor market. The Fed elected to play wait and see. The Strait of Hormuz is open again for commercial traffic, and pump prices are falling. It’s possible that it may hold steady, rather than moving higher or lower. Let’s hope inflation starts to decrease as it really should. This week will be relatively light for economic releases. Let there be peace and prosperity, and let the market continue its upward trend. Have a great week, and call with questions.
Regards,
Don
Wells Fargo Advisors Financial Network did not assist in the preparation of this report, and its accuracy and completeness are not guaranteed. The opinions expressed in this report are those of the author(s) and are not necessarily those of Wells Fargo Advisors Financial Network or its affiliates. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Additional information is available upon request.
Investment product and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN), Member SIPC. a registered broker-dealer and non-bank affiliate of Wells Fargo & Company. WFAFN uses the trade name Wells Fargo Advisors.