The end of last week was a classic example of being rewarded for time in the markets and not caving in to emotions or market timing. Are there still concerns? Sure. Are markets being pushed higher by a small group of stocks? Yes!

Remember the “Soup Nazi” from Seinfeld? Well, Federal Reserve Chairman Jerome Powell channeled his inner “Soup Nazi” with an emphatic “No rate cuts for you” last Wednesday.

After a rough first couple of weeks to open 2024, markets have been ripping the past week and a half. We’ve settled into an interesting environment where the talk has gone from a hard landing, recession and four rate hikes in 2023 to a soft landing and six possible rate cuts in 2024.

Markets continued to climb back toward end-of-July highs last week. After the Federal Reserve’s last meeting and a softer jobs number indicated a slowing economy, markets began to look for additional confirmation of easing inflation. That arrived with a flourish last week (more in the next section) and all but sealed the end of additional interest rate hikes.

Stocks opened the week strong, with the S&P 500 marking the 15th consecutive Monday of gains. But deepening tensions in the Middle East weighed on markets by mid-week, and shares fell sharply on Thursday following reports that a U.S. Navy destroyer had shot down cruise missiles reportedly headed toward Israel.

Despite the conflict in Israel, markets rallied early last week, and the potential for added turmoil in the Middle East had not had any measurable impact on the markets through the middle of the week.

Markets continued to slump last week as bond rates hit levels we haven’t seen in 16 years. Suddenly, a five-year treasury yielding 4.7% isn’t so bad when compared to the volatility of the stock market.

The month of September is historically a rough month for markets — and this year was no exception. Rising gas prices and high mortgage rates weighed on markets throughout the month. Then the prospect of a potential government shutdown pulled stocks down even further last week.

The Federal Reserve didn’t raise rates last week but left the door open for one more rate hike in the final two meetings of 2023. This was widely expected, but markets still didn’t like Chairman Jerome Powell’s comments in his post-meeting press conference.

Stocks closed lower last week, even as the latest data shows the U.S. is still doing well from an economic standpoint. Not a lot of new numbers were released, but the ones that were generally surprised on the upside.

Markets didn’t know which direction to go last week as they tried to decide which had more weight: the good news or the not-so-good news.

After reaching 4,400 points at breakneck speed, the S&P naturally took a few steps back last week.

The Federal Reserve raised interest rates by 25 basis points, signaling a pause in June. Markets reacted negatively, as the debt ceiling debate and bank struggles weighed on sentiment.

What is needed to get back on track? I believe the Fed needs to stop raising rates. It’s not a magic solution; if the Fed stops raising rates, things won’t automatically revert back to all good or normal. We need to get government spending in line, and the consumer needs to get healthy again before that can happen.

Maybe Lionel Ritchie was on to something. It would seem this story shouldn’t be a story, but given today’s political climate, here we are.

Hiring has been strong this year, especially at restaurants and retailers. But is there a change coming?

Ever heard of a “ Jacob’s ladder” ”? It’s a notoriously difficult sailing ship apparatus that requires finesse to use effectively. One small shift in body weight, and you get all twisted around (if you don’t fall completely off). Federal Reserve Chairman Jerome Powell seems to be grappling with his own Jacob’s ladder, balancing between raising rates to tame inflation and supporting banks under increasing pressure due to the Fed’s rate hikes.

To say lots has been happening in the U.S. banking system over the past two weeks is quite the understatement. First Silicon Valley Bank and Signature Bank were closed by regulators. Then fissures appeared over at Credit Suisse, which reported in February that clients pulled $119 billion out in the fourth quarter and that in 2022 the bank realized its biggest annual loss since 2009.

Remember the phrase, “March comes in like a lion and goes out like a lamb?” As we closed out a turbulent February, where we gave back almost half of our sparkling January returns, March started much like February ended.