It was a wild week in the markets, but at Fridays close the S&P 500 stood at 3583, down for the week. On Tuesday JPMorgan's CEO Jamie Dimon called for the possibility of another 20% to the downside. On Wednesday the September producer price index (PPI) came in at a higher than expected 0.4%, more than the consensus estimate of 0.2%. As such, the S&P 500 closed at a new 2022 record low at 3577, and also notching its sixth-straight day in the red. This matched the length of the previous second six day losing streak which ended on 27 September. To put this in a yearly perspective, the last time the S&P 500 registered just one six down day stretch was in February 2020 at the beginning of the pandemic. To top it off, this is the first time since 2018 that the S&P 500 has had two six down day streaks in the same calendar year. Then came Thursday which showed the September monthly consumer price index (CPI) increasing 0.4%, higher than expected. Looking back 12-months, headline inflation was up 8.2%, still hovering near the highest levels since 1981 when the annual increase was 11.2%. After selling off at the open, the S&P rebounded and marked its fifth largest intraday reversal from a low in the history of the S&P 500. Not to be outdone, the S&P 500 then had an over two percent loss on Friday, closing at 3587, just ten points above Wednesdays 2022 low. Looking forward, we have a full week of earnings reports. For TSP TIPS, we again recommend no changes to our current allocation.
It was a wild week in the markets, but at Fridays close the S&P 500 stood at 3583, down for the week. On Tuesday JPMorgan's CEO Jamie Dimon called for the possibility of another 20% to the downside. On Wednesday the September producer price index (PPI) came in at a higher than expected 0.4%, more than the consensus estimate of 0.2%. As such, the S&P 500 closed at a new 2022 record low at 3577, and also notching its sixth-straight day in the red. This matched the length of the previous second six day losing streak which ended on 27 September. To put this in a yearly perspective, the last time the S&P 500 registered just one six down day stretch was in February 2020 at the beginning of the pandemic. To top it off, this is the first time since 2018 that the S&P 500 has had two six down day streaks in the same calendar year. Then came Thursday which showed the September monthly consumer price index (CPI) increasing 0.4%, higher than expected. Looking back 12-months, headline inflation was up 8.2%, still hovering near the highest levels since 1981 when the annual increase was 11.2%. After selling off at the open, the S&P rebounded and marked its fifth largest intraday reversal from a low in the history of the S&P 500. Not to be outdone, the S&P 500 then had an over two percent loss on Friday, closing at 3587, just ten points above Wednesdays 2022 low. Looking forward, we have a full week of earnings reports. For TSP TIPS, we again recommend no changes to our current allocation.