The back half of the week was tough on the markets with the S&P 500 down over 1% on Wednesday and over 2% on both Thursday and Friday, closing down at 3900. The big news behind this sell off was inflation, when the May consumer price index report showed prices rising 8.6% year over year, its highest level since 1981. Making matters worse was the University of Michigan preliminary June consumer sentiment index number which came in at a record low level of 50.2, with the survey dating back to the mid-'70s. And finally, the 2-year Treasury yield jumped above 3% on Friday to hit its highest level since 2008. Opening up the aperture a little, the S&P 500 S&P has been down in 10 of the last 11 weeks, and only up in 7 of the 23 weeks this year. Taking a look at this weeks volatility, the S&P 500 now has 57 days of moves over 1% in 2022, which surpasses the 2021 total number of 55. Next week we have the Producer Price Inflation number on Tuesday followed by the Fed rate decision and press conference on Wednesday. For TSP TIPS, the S&P 500/C fund appears to be a little bit oversold and hopefully will be muted on Monday and Tuesday while waiting on the Fed. As such, we are making no reallocation recommendation this week. However, should the S&P 500 cross below the 3875.13 and 3810.32 levels, stand by for a mid-week alert(s).
The back half of the week was tough on the markets with the S&P 500 down over 1% on Wednesday and over 2% on both Thursday and Friday, closing down at 3900. The big news behind this sell off was inflation, when the May consumer price index report showed prices rising 8.6% year over year, its highest level since 1981. Making matters worse was the University of Michigan preliminary June consumer sentiment index number which came in at a record low level of 50.2, with the survey dating back to the mid-'70s. And finally, the 2-year Treasury yield jumped above 3% on Friday to hit its highest level since 2008. Opening up the aperture a little, the S&P 500 S&P has been down in 10 of the last 11 weeks, and only up in 7 of the 23 weeks this year. Taking a look at this weeks volatility, the S&P 500 now has 57 days of moves over 1% in 2022, which surpasses the 2021 total number of 55. Next week we have the Producer Price Inflation number on Tuesday followed by the Fed rate decision and press conference on Wednesday. For TSP TIPS, the S&P 500/C fund appears to be a little bit oversold and hopefully will be muted on Monday and Tuesday while waiting on the Fed. As such, we are making no reallocation recommendation this week. However, should the S&P 500 cross below the 3875.13 and 3810.32 levels, stand by for a mid-week alert(s).