Financial News and Portfolio Management Discussion through June 11th

All the news you need to stay informed about what’s currently driving the market — courtesy of Raffa Wealth Management, LLC.

US stocks experienced their worst week since January as inflation data came in higher than expected and indicated inflation has yet to peak. The S&P 500 fell 5% for the week and the Dow ended the week 4.6% lower. Foreign markets were also negative for the week with the FTSE All World Ex US declining 3.4% for the week. US crude gained slightly ending the week at $120.67 per barrel up from $120.27 the week prior. The yield on the 10-year Treasury jumped to 3.16% up from 2.94% the week prior.

Headline CPI increased 8.6% in May from the same month a year ago, higher than the expected 8.3% and marking its largest increase since December 1981. Core CPI was up 6%, slightly higher than the 5.9% estimated, but lower than the 6.2% increase in April. May marked the largest differential between Headline and Core CPI in the last decade.

The ECB laid out plans to increase its key rate, for the first time in more than a decade, by a quarter percentage point to minus 0.25% at its July meeting and increase it again in September, possibly by a larger amount. The ECB will also end its large-scale bond-buying program on July 1. After September, the ECB said it expects a series of further gradual rate increases.

Chinese exports surged in May as Covid-19 restrictions eased, adding to signs of recovery in the Chinese economy.

There is no guarantee that any investment strategy, including those described here, will be successful. Any investment or investment strategy can lose money. Past performance does not guarantee or predict future results. You should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Raffa Wealth Management, LLC. This information was gathered from reliable sources but we cannot guarantee accuracy. Indexes do not reflect the fees associated with actual investments and such fees would reduce the performance illustrated.
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