Friends
Despite or maybe because of today’s better than expected first look at 2nd quarter GDP, stocks finally suffered a decisively losing day. Things were due to cool off a bit, at the very least, and given the Fed move happened yesterday and today’s rosier than expected economic outlook may spark further inflation fighting measures from the Fed, it was not a surprise to see selling action.
For the day, the Dow Jones Industrial Average was down 278 points to close at 35,282. The S&P 500 was down 29 points to finish the day at 4,537. The Nasdaq Composite Index was down 77 points to close at 14,050. Gold was down $26 to trade at $1,944 per ounce, while oil was up $.95 to trade at $79.73 per barrel WTI.
We get another inflation report tomorrow with the release of the July PCE Price Index. The bulls have been counting on rate increases being over or just about. Any economic strengthening would likely cause the Fed to continue to see inflation as the enemy and rates may not be done going up. That would be a monkey wrench in the bull’s narrative. Anyway, let’s see how the week finishes out tomorrow.
Have a nice evening everyone.
