The S&P 500 had a volatile but positive week, closing Friday at 3,971. After a flat Monday, the S&P 500 gapped up at Tuesdays open and closed above that psychological 4,000 level. On Wednesday the S&P 500 hovered around that level until 1400 when the Feds decision to raise rates by 25 basis points was announced. Fed Chair Powells remarks started 30 minutes later and the S&P 500 jumped to a weeks high of 4,039. However the longer he talked the worse it got and by the closing bell the S&P had lost just over 100 points, closing near the weeks low. This was another week of raising rates to battle inflation and an uncertain banking environment. As a result of this higher cost of capital for banks, loans have come under increased scrutiny and are becoming more difficult to finance. From a technical perspective, the S&P 500 seems mired halfway between its 50 and 200 day Moving Averages (MA) and also its 2023 high and low. For next week, Friday brings the US core PCE price index and the end of the first quarter. For TSP TIPS our current investment mix remains appropriate and as such no changes are recommended.
The S&P 500 had a volatile but positive week, closing Friday at 3,971. After a flat Monday, the S&P 500 gapped up at Tuesdays open and closed above that psychological 4,000 level. On Wednesday the S&P 500 hovered around that level until 1400 when the Feds decision to raise rates by 25 basis points was announced. Fed Chair Powells remarks started 30 minutes later and the S&P 500 jumped to a weeks high of 4,039. However the longer he talked the worse it got and by the closing bell the S&P had lost just over 100 points, closing near the weeks low. This was another week of raising rates to battle inflation and an uncertain banking environment. As a result of this higher cost of capital for banks, loans have come under increased scrutiny and are becoming more difficult to finance. From a technical perspective, the S&P 500 seems mired halfway between its 50 and 200 day Moving Averages (MA) and also its 2023 high and low. For next week, Friday brings the US core PCE price index and the end of the first quarter. For TSP TIPS our current investment mix remains appropriate and as such no changes are recommended.