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Market Update | September 19, 2022

The week of September 5 (two weeks ago) saw a bounce for U.S. stocks from the prior week. However, last week delivered a downward reversal again. The week of June 13 remains the low point in the S&P 500 so far this year. The market is currently 6% above that point.

The Federal Reserve (Fed) is in focus this week. The financial markets are paying close attention to the Fed’s upcoming policy meeting, which will begin Tuesday. The central bank is expected to raise interest rates by another three-quarters of a point.

The 10-year U.S. Treasury yield topped 3.51% this morning, its highest level in 11 years. Rates across the board are still rising, and several nearer-term rates remain higher than the 10-year Treasury. As of this morning, the peak of the U.S. Treasury yield curve is the 1-year Treasury, which is 4.05%.

The trends of this year – dicey stock market action and a pronounced upward trend in interest rates – continue. These trends will eventually subside, but we believe we should stay mentally prepared for this pattern a while longer. As always, let us know if you have any questions or if we can do anything for you.

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