Weekly Market Report for June 20-23, 2023

Weekly Market Report for June 20-23, 2023
  • Markets
    • Dow Jones Industrial Average   -1.4%
    • S&P 500   -1.1%
    • Russell 2000   -2.6%
    • NASDAQ   -1%

The major U.S. equity markets finished the week lower following the Fed chief’s testimony and a continued housing supply shortage. Jerome Powell said policymakers anticipate further rate hikes in order to address U.S. economic growth and inflationary pressures. Powell stated that the speed of rate hikes is no longer an issue and the Fed is considering gradual rate increases moving forward. Equity markets want to see the end of the rate hike cycle and the Fed chair’s comments failed to provide the end stocks were seeking. In addition, the U.S. is experiencing a housing supply shortage which continues to prop up home prices. Housing is the largest component of inflation so it’s difficult for the Fed to rid inflation if elevated home prices persist. The combination of these factors, amongst other, sparked a sell off this week.

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