Stevens Capital Partners is committed to keeping clients informed about the current market trends. Key areas of focus in this market commentary include the job market, wage growth, inflation, and potential volatility.
The job market started strong in 2024, exceeding expectations with 216,000 added jobs in December and a wage increase of 4.1%. Despite concerns of a possible recession in 2023, the economy added 2.7 million new jobs. However, wage growth could pose challenges to Federal Reserve policy.
The Consumer Price Index (CPI) rose by 0.3% in December and 3.4% over the year, surpassing expectations. Core CPI, excluding food and energy, rose by 3.9%, slightly improved from November’s 4.0% gain. Shelter costs continue to impact inflation, potentially challenging expectations of rate cuts by the Federal Reserve.
The market rallied at the end of 2023 due to expected dovish moves from the Federal Reserve, but this also increases potential volatility if the narrative changes. Investors will closely watch upcoming inflation, retail sales, and jobs reports to assess consumer health.
Despite market dynamics, Stevens Capital Partners emphasizes the importance of adhering to long-term financial plans. If you have any questions or concerns, please reach out. We remain committed to prioritizing our clients’ financial well-being.
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