Stocks notched a solid gain as dovish comments from Federal Reserve officials boosted the market’s recovery from early August lows.
The Standard & Poor’s 500 Index rose 1.45 percent, while the Nasdaq Composite added 1.40 percent. The Dow Jones Industrial Average picked up 1.27 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, gained 2.98 percent.1,2
Dovish Week
Stocks started the week strong, rallying after Wall Street welcomed dovish comments from Minneapolis Fed President Neel Kashkari. The S&P 500 and Nasdaq each posted gains on Monday–the 8th consecutive winning session. The Dow rose for the 5th session in a row.3,4
From there, markets traded in a narrow band until Wednesday afternoon when minutes released from the July 30-31 FOMC Meeting revealed more dovish comments. On Thursday, stocks dipped ahead of Fed Chair Jerome Powell’s annual Jackson Hole, Wyoming, speech.5,6
Well-received comments from Powell on Friday boosted markets, with all three averages closing higher.7
“The Time has Come”
The Fed’s annual symposium for global central bankers started Friday morning with Fed Chair Powell’s much-anticipated speech. Citing the risk of the labor market cooling even further, he said, “the time has come for policy to adjust.”
Investors responded favorably, with the remaining question being how significant a rate cut might be. Powell kept that door open, adding that “the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”8
This Week: Key Economic Data
Monday: Durable Goods.
Tuesday: Consumer Confidence. Case-Shiller Home Price Index.
Wednesday: Fed Official Raphael Bostic speaks.
Thursday: GDP. International Trade in Goods. Jobless Claims. Pending Home Sales.
Friday: Personal Income and Outlays. Consumer Sentiment.
Source: Investors Business Daily – Econoday economic calendar; August 23, 2024
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.
This Week: Companies Reporting Earnings
Wednesday: NVIDIA Corporation (NVDA), Salesforce Inc. (CRM)
Thursday: Dell Technologies Inc. (DELL)
Source: Zacks, August 23, 2024
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.
Gig Economy Tax Tips
There are some essential tips to remember if you work as a gig worker, someone who takes temporary work through one or more employers:
- All income from these sources is taxable, regardless of whether you receive information returns; this includes both full-time and part-time work and if you’re paid in cash.
- As a gig worker, you must be correctly classified as an employee or an independent contractor; this can depend on where you live, even for the same services.
Lastly, it’s important to remember to pay the correct amount of taxes on this income throughout the years to avoid owing when you file. Because gig employees don’t have an employer withholding taxes from their paychecks, they can either submit a new W-4 and have their employer withhold more from their paycheck (if they have another job as an employee) or make quarterly estimated tax payments throughout the year.
*This information is not intended to be a substitute for specific, individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.
Tip adapted from IRS.gov9
Footnotes and Sources
- The Wall Street Journal, August 23, 2024
- Investing.com, August 23, 2024
- The Wall Street Journal, August 23, 2024
- The Wall Street Journal, August 19, 2024
- MarketWatch.com, August 22, 2024
- Reuters.com, August 22, 2024
- The Wall Street Journal, August 23, 2024
- The Wall Street Journal, August 23, 2024
- IRS.gov, May 8. 2024
- Formstack, May 8, 2024
