Weekly Market Report for May 8-12, 2023

Weekly Market Report for May 8-12, 2023
  • Markets
    • Dow Jones Industrial Average   -1.2%
    • S&P 500   -0.3%
    • Russell 2000   -1.4%
    • NASDAQ   +0.7%

All major domestic equity markets, aside from the tech-heavy NASDAQ, finished lower. The Federal Reserve reported tighter lending standards and continued decline in loan demand. In other words, fewer dollars are in circulation resulting in decreased consumer spending – on which our economy relies. The recent regional banking woes further incentivized banks to tighten credit access. U.S. Small Business Confidence fell this week on worries that economic conditions will not improve. Businesses are still reporting a shortage in workers meaning wage inflation may have room to grow. Monthly inflation numbers increased while annual inflation numbers eased, though not as much as analysts would like. Multiple key data points hit this week and few painted a clear picture of economic improvement, so equity markets dropped.

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