Rising bond yields and fears of a government shutdown hammered stocks last week, with technology shares bearing the brunt of the retreat.
The Dow Jones Industrial Average lost 1.89%, while the Standard & Poor’s 500 dropped 2.93%. The Nasdaq Composite index tumbled 3.62% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, fell 1.77%.1,2,3
Stocks Sell Off
Investor sentiment took a decidedly negative turn last week when investors were caught off-guard by the Fed signaling another potential rate hike this year, upending hopes that the Fed might finish its current rate-hike cycle.
Stocks declined sharply following the Federal Open Market Committee (FOMC) announcement and continued to fall the following day as bond yields spiked. The 10-year Treasury yield hit 4.48% on Thursday, touching its highest point in more than 15 years.4
Stocks also reacted to news that the House of Representatives went into recess on Thursday, increasing the prospect of a government shutdown. The sell-off cooled on Friday, adding only incrementally to the week’s accumulated losses.
Fed Signals Rate Hike
As expected, the Fed held interest rates steady but surprised many investors by signaling another rate hike before year-end and suggesting that rates may need to remain high through 2024. In his post-announcement press conference, Fed Chair Powell remarked the inflation battle would continue, and upcoming economic data would inform the FOMC’s future rate hike decision.
In their economic projections, 12 of 19 Fed officials expect to raise rates once more this year. (The FOMC meets again on October 31-November 1, and in December.) The Fed also lowered their unemployment projection from their June estimate and revised their projection for annual core inflation to 3.7% in the fourth quarter, down from June’s 3.9% forecast.5
This Week: Key Economic Data
Tuesday: Consumer Confidence. New Home Sales.
Wednesday: Durable Goods Orders.
Thursday: Jobless Claims. Gross Domestic Product (GDP).
Friday: Personal Income and Outlays.
Source: Econoday, September 22, 2023
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.
This Week: Companies Reporting Earnings
Tuesday: Costco Wholesale Corporation (COST)
Wednesday: Micron Technology, Inc. (MU)
Thursday: Nike, Inc. (NKE)
Source: Zacks, September 22, 2023
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.
Think about Credits and Deductions Now to Prepare for Filing
Here are a few facts about credits and deductions that can help you with year-round tax preparation:
- Taxable income remains after someone subtracts any eligible deductions from their adjusted gross income, including the standard deduction. Some taxpayers may itemize their deductions to manage their adjusted gross income.
- Generally, if a taxpayer’s itemized deductions are larger than their standard deduction, they should consider itemizing. Depending on the situation, some taxpayers may even be required to itemize.
Taxpayers can subtract tax credits from the total amount of tax they owe. To claim a credit, taxpayers should keep records showing their eligibility. Some major tax credits include the Child Tax Credit and the Child and Dependent Care Credit, the American Opportunity Credit or Lifetime Learning Credit, and the Earned Income Tax Credit.6
*This information is not intended to substitute for specific individualized tax advice. We suggest you discuss your specific tax issues with a qualified tax professional.
Macro Dieting is a New Way to Approach Calorie Counting
Macro dieting goes a step further than just basic calorie counting. Instead of counting just the number of calories, you count the macronutrients, including proteins, carbs, and fats. How much of each macronutrient you need depends on your body type, goal, lifestyle, and activity level. Rather than depriving your body of nutrients, you are instead focusing on meals that give your body the nutrients it needs to be more efficient.
To start a macro diet, you must first calculate how many grams of each macro you should eat. A rough breakdown is 50-25-25, meaning 50% of your calories come from carbs, 25% from protein, and 25% from fat. But this breakdown will depend on your goals. For example, if you focus on strength training, you should eat more protein. Naturally, you will want to discuss any significant changes to your diet with your medical professionals.7
Pumpkin Tres Leches Cake
PREP TIME: 2 hours | COOK TIME: 35 mins | TOTAL TIME: 2 hours 35 mins
This pumpkin tres leches recipe includes perfectly moist and spiced sponge cake topped with whipped cream and pumpkin pie spice!
- 2 cups all-purpose flour
- 2 teaspoons baking powder
- 2 teaspoons baking soda
- 1 teaspoons ground cinnamon
- 1 ½ teaspoons pumpkin pie spice
- ¼ teaspoon salt
- 1 (15-oz) can pumpkin puree
- 4 eggs
- 1 cups granulated sugar
- ¾ cups vegetable oil
- 1 teaspoon vanilla extract
- 1 cup whole milk
- 8 ounces sweetened condensed milk
- 6 ounces evaporated milk
- 1 cup heavy cream
- 3 tablespoons granulated sugar
- 1/2 teaspoon vanilla extract
- 1/2 teaspoon pumpkin pie spice
- Preheat the oven to 350°F. Coat a 9×13-inch pan with cooking spray, olive oil, or butter. Set aside.
- In a medium bowl, add the all-purpose flour, baking powder, baking soda, ground cinnamon, pumpkin pie spice, and salt. Whisk together to combine.
- In a large bowl, add the pumpkin puree, eggs, granulated sugar, vegetable oil, and vanilla extract. Whisk together until fully combined.
- Add the dry ingredients to the wet ingredients and whisk together until well combined and smooth.
- Pour the batter into the prepared pan and bake for 30 to 35 minutes, or until a toothpick inserted into the center comes out clean. Set aside to cool for 10 minutes while you make the three milk mixture.
- In a medium bowl, add the milk, sweetened condensed milk, and evaporated milk. Whisk together to combine.
- Using a knife or a spatula, gently unstick the sides of the cake from the pan. Then, poke holes all over the cake using a skewer or a large fork. Gradually pour the three milk mixture over the cake. Cover and refrigerate for at least two hours to let the cake fully cool and absorb the liquid.
- While the cake cools, make the whipped topping. In a large bowl, add the heavy cream, sugar, and vanilla extract. Beat on high speed using a handheld or stand mixer until soft peaks form. Cover and refrigerate until ready to use.
- When the cake has cooled completely, top with the whipped topping and garnish with a dusting or sprinkle of pumpkin pie spice.
Notes: This cake can be made up to 3 days ahead of time and stored in the fridge until ready to serve. Leaving the whipped topping off until right before serving.
Footnotes and Sources
1. The Wall Street Journal, September 22, 2023
2. The Wall Street Journal, September 22, 2023
3. The Wall Street Journal, September 22, 2023
4. CNBC, September 21, 2023
5. The Wall Street Journal, September 23, 2023
6. IRS.gov, January 31, 2023
7. EatingWell.com, January 4, 2023
Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.
The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.
This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG is not affiliated with the named representative, financial professional, Registered Investment Advisor, Broker-Dealer, nor state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security.
Copyright 2023 FMG Suite.