Your Capital Markets Snapshot: Capital Markets Experienced Increased Volatility

Last week, the capital markets experienced increased volatility due to concerns about a slowing economy and persistent inflation. Despite these challenges, stocks have shown strong gains and are near record highs. The latest inflation data revealed a month-over-month increase in core CPI, indicating that the fight against inflation is not yet over. However, the broader trend shows that inflation is on a downtrend, with core CPI levels returning to those seen in early 2021. The Federal Reserve is expected to start an extended phase of rate cuts at its upcoming meeting, which has brightened the outlook for monetary policy. Investors remain focused on inflation and labor market data and their implications for future Fed interest-rate moves.