2024 | March 18

The Markets

Stocks Slip



The major U.S. stock indexes slipped for the second week in a row, as the market’s solid daily gain on Tuesday was offset by declines later in the week. The modest two-week retreat was in contrast with the four-month rally that preceded it—a period when the S&P 500 rose 16 out of 18 weeks.

A benchmark of U.S. small-cap stocks lagged its larger peers by a wide margin, expanding small caps’ year-to-date performance deficit. The Russell 2000 Index was down 2% for the week.

A pair of reports showed that inflationary pressures remain stubborn, even as U.S. interest rates remain at their highest level since 2001. A report issued Tuesday on consumer prices and a Thursday update on producer prices both recorded price gains that were slightly higher than most economists had expected. The Consumer Price Index came in at an annual 3.2% rate in February, up from 3.1% the previous month. 

Yields of U.S. government bonds rose as the latest inflation data produced a shift in the interest-rate outlook. After retreating the previous week to 4.08%, the yield of the 10-year U.S. Treasury bond rebounded to close at 4.31% on Friday.

Amid tightening oil supplies, the price of U.S. crude rose around 4% for the week, reaching a peak of around $81.60 per barrel on Thursday afternoon. Although the price slipped to around $81.00 on Friday, oil remained near its highest level in more than four months.

A week after hitting a record high, the price of the most widely traded cryptocurrency pushed even higher, eclipsing $73,000 on Wednesday. However, Bitcoin’s price pulled back later in the week, and it was trading around $68,000 on Friday, close to where it ended the previous week. Year to date, the cryptocurrency was up more than 60%.

February’s 0.6% gain in U.S. retail sales was slightly below the consensus estimate of economists; however, the result marked an improvement from the 1.1% decline recorded in January. That updated January reading reflected an adjustment from an initial estimate of a 0.8% decline.

The U.S. Federal Reserve is expected to keep its benchmark interest rate unchanged at its two-day meeting that concludes Wednesday, and Fed observers will watch for any clues about the timing of eventual rate cuts this year. Based on Fed funds futures trading, most investors expect the Fed’s pivot to rate-cutting mode is likely to begin in either June or July.

Source: John Hancock Investment Management

AJA March Madness

What Do You Know About the Economic Power of Women?

For decades, the number of women in the U.S. workforce has increased, yet the gender pay gap persists. White women who work full time earn about 84 cents for every dollar men earn, and earnings are even lower for women of color and women with disabilities. Despite the gap, the economic power of women is growing.

“Women…start more businesses than their male counterparts. They earn as much or more than their husbands in 45% of heterosexual marriages. Among solo households, they own more homes. And by the end of this decade, a 2020 study by the business consulting firm McKinsey found, women are poised to control much of the $30 trillion in wealth expected to be possessed by baby boomers,” reported Brittany Shammas of The Washington Post.

See what you know about the economic power of women by taking this brief quiz.

1. What percentage of the billionaires in the United States are women, according to MillennialMoney?

a. About 2%

b. About 12%

c. About 32%

d. About 50%

2. According to Pew Research, people in the 10 highest-paying occupations earn more than $100,000 a year, on average. That’s more than twice the national average of $41,000. Overall, women hold 35% of the jobs in those occupations. They are the minority in every occupation except one. Which one is it?

a. Lawyers

b. Dentists

c. Pharmacists

d. Actuaries

3. A stay-at-home parent (SAHP) wears a lot of hats: childcare worker, housekeeper, cook, interior designer, event planner, and many others. A survey reported the median number of hours a SAHP worked was 106 per week. How much did Salary.com estimate a SAHP would earn if they were paid for their work?

a. $31,000

b. $56,000

c. $103,000

d. $184,000

4. Women in the United States are responsible for a significant percentage of household assets. The amount is equal to about one-third of 2023 U.S. gross domestic product, which is the value of all goods and services our country produced last year.  About how much money do American women control?

a. $5 trillion

b. $10 trillion

c. $15 trillion

d. $20 trillion

Answers: 1) b; 2) c; 3) d; 4) b

Phone: (615) 709-8709

Fax: (615) 505-3306

eMoney

Charles Schwab

Advyzon

Emily Triano

Operations Manager

emily@ajadvice.com

Maya Laws

Operations Associate

maya@ajadvice.com

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