Market Recap: Inflation Rises, Student Loans Paused, Cyber Attacks Continue

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Market Recap: Inflation Rises, Student Loans Paused, Cyber Attacks Continue

SPY
S&P 500

Last Week: 0.09%
YTD: 15.46%
1 Year: 24.75%

DIA

Dow Jones Industrial Average

Last Week: 0.11%
YTD: 4.79%
1 Year: 15.97%

ONEQ
NASDAQ

Last Week: 0.72%
YTD: 19.11%
1 Year: 31.00

Russell 2000

Last Week: 0.31%
YTD: 0.77%
1 Year: 8.92

Large Growth

YTD: 21.80%
1 Year: 34.77

Large Value

YTD: 5.94%
1 Year: 12.40%

Key Inflation Measure

The core personal consumption expenditure price index increased 2.6% from a year ago and 0.1% from the previous month. This new data was in line with analysts’ expectations. May marked the lowest annual rate since March 2021. On another note, personal income rose 0.5% on the month, stronger than the 0.4% expected increase. The Fed uses these two measures to determine the optimal time to start lowering interest rates. 

Student Loan Repayments Paused

The Biden administration is pausing student loan payments for about three million borrowers enrolled in its new repayment plan, the SAVE plan, as it faces legal challenges from Republican-backed lawsuits. These borrowers, with monthly payments above $0, will owe nothing on their debt for now. Two federal judges have temporarily halted significant parts of the plan, citing overreach by the administration. The Department of Education has vowed to defend the plan, and affected borrowers will be put into forbearance without accruing interest.

Retail Software Cyber Attack

CDK Global, a major software provider to the auto industry, is still seeing major outages after a cyber attack began last week. Nearly 15,000 car dealerships in North America have been affected since Wednesday. The company has not yet determined who is behind the attack but has launched an investigation into the ransom-style cyber attack. Many car manufacturers and dealers have had to implement a temporary solution to remain operational while the outage is ongoing. Mike Stanton, the president and CEO of the National Automobile Dealers Association, told news stations in a statement, “We continue seeking information from CDK on the nature and scope of the cyber incident, so dealers can respond appropriately.” CDK expects the systems to be restored over the next few days. 

  • 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.

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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).

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