On a shortened US work week, all eyes are on Europe. It appears almost conclusive that the European Central Bank will cut interest rates in June, taking the lead on loosening monetary policy away from the traditional leader, the US Federal Reserve. The major indexes recorded widely varying results last week, with the Dow Jones Industrial Average recording its biggest weekly loss (-2.3%) since early April, while the technology-heavy Nasdaq Composite continued its recent march into record territory. The first estimate of the eurozone Composite Purchasing Managers’ Index (PMI) for May came in at a 12-month high of 52.3, up from 51.7 in April. (PMI readings greater than 50 indicate an increase in activity.) Expectations about the future path of Federal Reserve interest-rate policy have been on a roller coaster this year, and the next potential catalyst could come this Friday with the release of the Fed’s preferred inflation measure of consumer inflation (core PCE personal consumption expenditure). On the wealth planning front, we discuss how to mitigate single stock concentration risks.
Click Here to Read the May 28, 2024, Economic Commentary
Click Here to Read the May 28, 2024, Investment Commentary
Click Here to Read the May 28, 2024, Wealth Planning Commentary
