Underdog Investors

Introduction:  Guess what? It's time to breathe a little easier! The latest numbers from the Bureau of Labor Statistics have just rolled in, and they're showing us that inflation, that old thief that's been raiding our wallets, is finally cooling its heels. With a measly 0.1% rise from May to June 2024 in the core consumer price index (CPI) — yup, that's the smallest bump since the summer of '21 — there’s chatter that the Fed might just cut us some slack with a rate cut soon. Key Takeaways: Chill in the Air for Core Inflation:  This June, core inflation (which lets food and energy do their own wild thing and doesn't count them) only went up a tiny bit. Yearly, it’s up by 3.3%, which is pretty tame compared to the last few years. Overall CPI Takes a Dip:  The overall CPI even dipped by 0.1% compared to last month, marking the first drop since the world turned upside down with the pandemic. What This Means for Your Wallet:  With these cooler inflation numbers, the...

This week, the stock market showed its strength, with the S&P 500 going up every day, even though there was a lot of political drama. The index gained 2%, the biggest increase since April. Economic news, like a slowdown in services and a slight rise in unemployment, made investors hopeful for lower interest rates from the Federal Reserve. Key Highlights/Takeaways Federal Reserve's Role : The Fed is still the main player, with hopes for rate cuts keeping the market upbeat. Treasury Yields and Dollar : After an initial jump, Treasury yields and the dollar both settled down, making the market more stable. High Stock Prices : The S&P 500 is trading at very high prices, which could mean slower growth in the future. Tech Stocks Lead : Big tech companies led the market rally, thanks to strong earnings from artificial intelligence. Financial stocks also did well but not as much. Risks Political Uncertainty : With the election coming up, there's still a lot of unknowns about fut...