Each week, we break down the latest U.S. economic reports, including what the results mean for the overall health of the economy. Here, you will find how economists’ forecasts compare with actual results, key takeaways to consider, as well as a list of what’s on tap for the week ahead. 

September was a solid month for investors, capping off a strong quarter for markets. Falling interest rates helped support stock returns, with the S&P 500 and Dow Jones Industrial Average setting new record highs during the month. Even bonds were up, marking five straight months with positive fixed income performance.

September was a solid month for investors, as falling interest rates supported healthy market returns. The S&P 500 and Dow set new all-time highs, while the Nasdaq got close. Still, risks remain. In the U.S., the primary concern is slower growth, as shown by cracks in the labor market. While the Fed’s attempts to support the economy by cutting rates are helpful, a further hiring slowdown could spook investors. Political risks are also rising with the upcoming elections.

Each week, we break down the latest U.S. economic reports, including what the results mean for the overall health of the economy. Here, you will find how economists’ forecasts compare with actual results, key takeaways to consider, as well as a list of what’s on tap for the week ahead.

“Sometimes the questions are complicated, and the answers are simple.”
— Dr. Seuss

Each week, we break down the latest U.S. economic reports, including what the results mean for the overall health of the economy. Here, you will find how economists’ forecasts compare with actual results, key takeaways to consider, as well as a list of what’s on tap for the week ahead.

The Federal Open Market Committee (FOMC) met this week and voted to cut rates by a half-percent, bringing its policy range to 4.75 percent to 5 percent. This decision comes after committee members had elected to hold rates steady at the preceding eight meetings after their hiking cycle concluded in July 2023. This vote also marks the first time in recent periods that a voting committee member dissented from the popular vote. We saw 11 committee members vote in favor of the action, with Fed Governor Michelle Bowman as the sole dissenter, preferring a quarter-percent cut.

August was an encouraging month for stocks, as markets were able to end the month in positive territory despite an early-month sell-off. The Dow Jones Industrial Average concluded the month at a record high, while the S&P 500 was close to its own record level. The Nasdaq Composite lagged its peers, but the technology-heavy index still managed to eke out a modest gain during the month.

Each week, we break down the latest U.S. economic reports, including what the results mean for the overall health of the economy. Here, you will find how economists’ forecasts compare with actual results, key takeaways to consider, as well as a list of what’s on tap for the week ahead.

The economic reports showed signs of improvement in August. Hiring picked up, compared to a downwardly revised hiring report for July. Service sector and consumer confidence improved in August but remained volatile over recent months. The yield curve inversion remained relatively stable, with long- and short-term yields falling during the month.