{"id":7932,"date":"2024-03-11T11:51:24","date_gmt":"2024-03-11T17:51:24","guid":{"rendered":"https:\/\/www.keystonefinancial.com\/?post_type=oi_article&p=7932"},"modified":"2024-03-11T11:51:26","modified_gmt":"2024-03-11T17:51:26","slug":"market-commentary-march-11-2024","status":"publish","type":"oi_article","link":"https:\/\/www.keystonefinancial.com\/articles\/market-commentary-march-11-2024","title":{"rendered":"Market Commentary | March 11, 2024"},"content":{"rendered":"\n
The week got off to a good start…<\/p>\n\n\n\n
In testimony before House and Senate committees, Federal Reserve (Fed) Chair Jerome Powell noted that prices had been falling and unemployment rates remained quite low. As a result, he expected the Fed to begin lowering the federal funds rate in 2024.<\/p>\n\n\n\n
\u201cI think we\u2019re in the right place,\u201d he said. \u201cWe\u2019re waiting to become more confident that inflation is moving sustainably at two percent. When we do get that confidence\u2014and we\u2019re not far from it\u2014it\u2019ll be appropriate to begin to dial back the level of restriction so that we don\u2019t drive the economy into recession rather than normalizing policy as the economy gets back to normal.\u201d<\/p>\n\n\n\n
After Powell\u2019s comments, the likelihood of a June rate cut rose, and so did U.S. stock indices. The bond market rallied, too, with yields across all maturities of U.S. Treasuries dropping lower through Thursday.<\/p>\n\n\n\n
On Friday, a mixed bag of employment data arrived. It showed that:<\/p>\n\n\n\n
\u00b7 Hiring was stronger than expected in February. Employers added 275,000 new jobs over the month \u2013 75,000 more than expected \u2013 although gains in December and January were revised lower.<\/p>\n\n\n\n
\u00b7 Wage growth was slower than expected, rising 4.3 percent year-over-year in February when economists had predicted a 4.5 percent annual increase, according to Meghan Leonhardt of Barron\u2019s.<\/p>\n\n\n\n
\u00b7 The unemployment rate rose, increasing from 3.7 percent to 3.9 percent. (The unemployment rate is derived from a separate and smaller survey of households.)<\/p>\n\n\n\n
The data suggested that the labor market was strong but cooling, and bolstered hopes that a soft landing might be ahead. While that was positive news, it was overshadowed by weakness in technology stocks. Sarah Hansen of Morningstar reported, \u201cThe stock market started 2024 with a blistering rally\u2026But the relentless pace of gains has some watchers worried about soaring valuations on stock prices and frothy trading.\u201d<\/p>\n\n\n\n
On Friday, major U.S. stock indices finished the week lower. However, U.S. Treasury bonds rallied as yields declined over the week.<\/p>\n\n\n\n