The S&P 500 has now made it three straight down weeks, closing at 4369. We started Monday on a bullish note, but the bear took over on Tuesday with a loss of over one percent. On Wednesday afternoon the Fed released its July meeting minutes which showed they remain concerned about an upside risk to inflation. As a result, on Thursday the 10-year U.S. Treasury yield reached its highest point since October 2022 and the market sold off and no company was exempt. As an example, Walmart reported an earnings and revenue beat and raised its full-year guidance, but still fell more than 2%. Thursday we also saw 30-year fixed mortgage rates climbing to 7.09%, the highest level in more than two decades. By the markets close, the S&P 500 had dropped below the 4400 level. Friday started off with the S&P 500 having a gap open to the downside and hitting its low of the week, but it pulled itself up to finish the day flat. Next weeks big event with be Fed Chair Powell delivering an address at the central banks symposium in Jackson Hole. For TSP TIPS the C and S funds closed below their 50 day Moving Averages this week, and the S funds Performance Ranking turned negative. As such we are recommending the following new investment mix.
The S&P 500 has now made it three straight down weeks, closing at 4369. We started Monday on a bullish note, but the bear took over on Tuesday with a loss of over one percent. On Wednesday afternoon the Fed released its July meeting minutes which showed they remain concerned about an upside risk to inflation. As a result, on Thursday the 10-year U.S. Treasury yield reached its highest point since October 2022 and the market sold off and no company was exempt. As an example, Walmart reported an earnings and revenue beat and raised its full-year guidance, but still fell more than 2%. Thursday we also saw 30-year fixed mortgage rates climbing to 7.09%, the highest level in more than two decades. By the markets close, the S&P 500 had dropped below the 4400 level. Friday started off with the S&P 500 having a gap open to the downside and hitting its low of the week, but it pulled itself up to finish the day flat. Next weeks big event with be Fed Chair Powell delivering an address at the central banks symposium in Jackson Hole. For TSP TIPS the C and S funds closed below their 50 day Moving Averages this week, and the S funds Performance Ranking turned negative. As such we are recommending the following new investment mix.