The S&P 500 gained 2.1% in August, extending its year-to-date return to 10.7%. Led by a 3.2% gain in Large Cap Value stocks, Growth trailed with a more modest 1.2% return. Health Care emerged as the best-performing sector, helping to lift the index, while Utilities and Technology lagged.
Market Commentary 6/5/24
Nearly 11 months have passed since the Federal Reserve last raised interest rates.
The pause in rate hikes follows a 17-month period where the central bank raised interest rates by 5.25%. This represented the fastest and most aggressive rate-hiking campaign in decades; however, the focus is shifting to interest rate cuts as the central bank prepares to make its next policy move.
At the beginning of 2024, investors expected the Federal Reserve to start cutting interest rates in March, and many market forecasters were predicting up to six cuts this year. It’s now June, and nearly half of the year has passed without an interest rate cut.
To better understand what is preventing the Federal Reserve from cutting interest rates, it’s useful to review the Fed’s overall mandate. The central bank has two main objectives: (1) price stability and (2) full employment.
Price stability means low and stable inflation. Full employment means economic conditions that create new jobs and keep unemployment low.
One of the tools the Federal Reserve uses to achieve these goals is interest rate changes. Rate hikes are used to combat inflation, while rate cuts are used to stimulate the economy.
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The S&P 500 gained 2.1% in August, extending its year-to-date return to 10.7%. Led by a 3.2% gain in Large Cap Value stocks, Growth trailed with a more modest 1.2% return. Health Care emerged as the best-performing sector, helping to lift the index, while Utilities and Technology lagged.
Tom Erb Named One of AdvisorHub’s “100 Solo Advisors to Watch in the U.S.” for Third Consecutive Year
Oxford Harriman & Company proudly announces that Tom Erb, a Senior Managing Director and Partner, has once again been recognized on AdvisorHub’s list of the “100 Solo Advisors to Watch in the United States” for 2025. This marks the third consecutive year (2023-2025) that Erb has earned this national distinction, underscoring his commitment to delivering exceptional service and guidance to his clients.