Market Recap: Inflation Cools, Spending Slows, PPI Drops, & Markets Rally

  • Home
  • Market Recaps
  • Market Recap: Inflation Cools, Spending Slows, PPI Drops, & Markets Rally
woman shopping

Market Recap: Inflation Cools, Spending Slows, PPI Drops, & Markets Rally

SPY
S&P 500
Last Week: 2.31%
YTD: 19.20%
1 Year: 16.16%
DIA

Dow Jones Industrial Average

Last Week: 2.08%
YTD: 7.34%
1 Year: 6.27%
ONEQ
NASDAQ
Last Week: 2.48%
YTD: 36.90%
1 Year: 28.54% 
Russell 2000
Last Week: 5.43%
YTD: 3.40%
1 Year: -.78% 
Large Growth

YTD: 26.08%
1 Year: 19.94% 

*As of 10/31/2023

Large Value

YTD: .56%
1 Year: 2.86% 

*As of 10/31/2023

Inflation

The Consumer Price Index, which is a measure we use to track inflation, was flat in October. It was below expectations but 3.2% above October 2022 levels. Inflation is still averaging 4%, which the Fed has stated they are hopeful to get back to 2%, our traditional average inflation rate in the US. After the inflation data was reported, the stock markets spiked, a possible sign the market is starting to price in future interest rate decreases.

Consumer Spending

US shoppers pulled back their spending in October. Retail sales, excluding auto and gas, fell .08%, and core retail sales, which removes restaurants, declined .03%. This was also good news on the inflation front. Year over year, overall retail and core retail sales are up 2.6%. Retail sales will be closely watched as we enter an important holiday season for retail sales and consumer household spending.

Wholesale Prices

The producer price index, which measures the final demand cost for businesses, declined 0.5%. This was well beyond the 0.1% expectation for the month. This was the largest decrease since April 2020. On a yearly basis, PPI increased 1.3%, also down considerably from September’s increase of 2.2%. A decline in the price of goods will be a much-welcome change before grocery shopping for Thanksgiving.

US Stock Markets

Markets reacted very favorably to the inflation, wholesale price, and retail data last week. Some economists are predicting a whole rate point decrease by the end of 2024. This seems optimistic, so do not hold your breath. The Fed is sticking to their word as they navigate the red-hot inflation post Covid-19 pandemic and getting inflation back down to 2%. While they still have work to do, the markets have rallied each time we have seen decreasing inflation data. Even though inflation is not back to 2% at this time, if there is progress, the markets will likely see that as a positive sign.
  • Alex Wolfe

    Alex is a Certified Financial Planner™. He brings nearly a decade of experience working with individuals, families, and business owners. Prior to working for Base Wealth Management, Alex worked for Fidelity Investments and an independent wealth management firm in Venice, FL. Through many years of practice, he specializes in helping clients navigate their financial goals through comprehensive financial planning. He received his bachelor’s degree in economics from Texas A&M University.

    View all posts

Schedule a Consultation

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

SUBSCRIBE TO OUR YOUTUBE CHANNEL!

Click here to go to our YouTube channel and subscribe for weekly financial updates and more! We’d love your help to in getting to 500 subscribers!

Register for our Open House event!

2022 Tax Document Information

As a Base Wealth Management client, you should receive your paper tax documents via mail in the coming weeks. Or, if you previously had an online account with Pershing’s NetX360, you should be able to access your 2022 tax documents through that portal. 

If not, or if you experience any issues, please reach out to Tim O’Brien (tim.obrien@intervestintl.com).

Get a FREE Solo 401(K) Guide

Simply submit your name and email to receive a PDF straight to your inbox.

"*" indicates required fields

Name*
This field is for validation purposes and should be left unchanged.
 *We protect your data and HATE spam.
 

Get a FREE Roth 457 Guide!

Simply submit your name and email to receive a PDF straight to your inbox.

"*" indicates required fields

Name*
This field is for validation purposes and should be left unchanged.
 *We protect your data and HATE spam.
 

Get a FREE Roth 401(K) Guide

Simply submit your name and email to receive a PDF straight to your inbox.

"*" indicates required fields

Name*
This field is for validation purposes and should be left unchanged.
 *We protect your data and HATE spam.
 

Get a FREE Solo 401(K) 2-Pager for FireFighters

Simply submit your name and email to receive a PDF straight to your inbox.

"*" indicates required fields

Name*
This field is for validation purposes and should be left unchanged.
 *We protect your data and HATE spam.
 

Get a FREE copy of Divorce the IRS

If you would like to request a physical copy of Divorce the IRS, please fill out the form below.

"*" indicates required fields

Name*
Address*
This field is for validation purposes and should be left unchanged.
 *This book is most suitable for households with $250K or more in investable assets.
 

OOPS!

You’ve stumbled across an element that isn’t quite ready for the web yet. We’re working on a lot of new features so stay tuned.

-The Base Wealth Team

Choose your advisor

Dan DiLascia

Sean Koscho

Kyle
Howell

Josh
Pisa