Investment Week at a Glance

Stocks finished higher for the week. The Dow Jones Industrial Average rose 1.0%, the S&P 500 was up 1.6%, and the NASDAQ rose 2.0%. Foreign stocks (MSCI EAFE) were also up, rising 1.1%. Bond prices were up for the week, with the 10-year U.S. Treasury ending the week at 4.06%.  (Data source: Wall Street Journal)

CPI Comes in Line with Expectations

CPI came in at 2.9% annualized in August, right in line with expectations. This was a rise from the 2.7% from last month, but with it being expected, the market had little reaction to the report. Core CPI, which excludes food and energy, came in at 3.1% in line with expectations as well. A positive in the inflation front was that PPI (producer price index) came in at 2.6% well below the estimate of 3.3%.

Anticipated Rate Cut This Week 

After much anticipation, we have finally arrived at the next Fed meeting, and markets are pricing in a 100% chance of a rate cut. Markets may experience some volatility as we approach Wednesday, and we will be paying close attention to Fed Chair Powell’s remarks. In the unlikely event we don’t get a rate cut, markets could react negatively as they have assumed a rate cut is coming for quite some time now.

Oracle Stock Rises Nearly 36%, Reaches All-Time High

Oracle stock rose last week as the company forecasted a 14-fold increase in cloud infrastructure revenue by 2030. OpenAI is set to pay Oracle $300 billion over the next five years, according to a Wall Street Journal report. Oracle has been one of the AI boom benefactors as its stock is up nearly 400% the past 5 years and over 70% the past 12 months. The company has its eyes on being the next member of the trillion-dollar market cap club, as it currently has a market cap of $830 billion. (CNBC)

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Quiz

How much is the price of Gold up for the year? (Scroll Down for Answer)

1.   27%
2.   32%
3.   38%
4.   45%

Answer:

3.  38%. Gold has had a very strong year as it is now up 38% for the year and up over $1,000 per ounce. The price of an ounce of Gold is nearing $3,700 and continues to hit all-time highs.

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