Forefront Market Notes: July 1st, 2024

Forefront’s Market Notes:

July 1st, 2024

Stocks finished the last week of June and Q2 mixed as investors digested a fresh round of economic data.

The Standard & Poor’s 500 Index slipped 0.08%, while the Dow Jones Industrial Average also dipped 0.08 percent. The tech-heavy Nasdaq Composite gained 0.24 percent. The MSCI EAFE Index tracks developed overseas stock markets and rose 0.27 percent for the week through Thursday’s close.1


Nasdaq Regains Lead

Last week opened with the S&P 500 and Nasdaq heading lower, while the Dow rallied on momentum from the prior week. But by mid-week, the leadership shifted with the Nasdaq pushing higher.2

With the back half of the week packed with fresh economic data, conflicting stories developed about the economy. New home sales fell 11.3 percent in May—the largest month-over-month drop in a year and a half—while the supply of new homes hit a 16-year high. Meanwhile, first-quarter GDP revised slightly to 1.4 percent higher, and durable goods increased in May.3,4,5

Friday’s personal consumption and expenditure (PCE) data showed that core inflation slowed to 0.1 percent in May over the prior month and 2.6 percent year-over-year—its lowest annual rate in three years. Both figures were in line with expectations. Stock prices initially rallied on the upbeat inflation news, but the early gains faded as the trading day progressed.6


Source:, June 29, 2024. Weekly performance is measured from Monday, June 24, to Friday, June 28.
TR = total return for the index, which includes any dividends as well as any other cash distributions during the period.
Treasury note yield is expressed in basis points.


Divergent Speakers

Federal Reserve officials have worked to communicate that despite the progress made on inflation in recent months, it remains above the Fed’s 2 percent target.

Last week, Fed Governor Michelle Bowman surprised the markets when she indicated, “I remain willing to raise the target range for the federal funds rate at a future meeting should progress on inflation stall or even reverse.” Fed Chair Powell, scheduled to speak on July 2, told investors on May 14, “I don’t think that it’s likely, based on the data that we have, that the next move that we make would be a rate hike.”7


Think About Credits and Deductions Now to Prepare for Filing

Here are a few facts about credits and deductions that can guide you through your year-round tax preparation:

  • Taxable income remains after someone subtracts any eligible deductions from their adjusted gross income, including the standard deduction. Some taxpayers may itemize their deductions to reduce their adjusted gross income.
  • The Tax Cuts and Jobs Act changed itemized deductions. In comparing these changes, many individuals accustomed to itemizing may find it more beneficial to take the standard deduction.
  • Generally, if a taxpayer’s itemized deductions are more significant than their standard deduction, they should itemize. Depending on the situation, some taxpayers may even be required to itemize.
Taxpayers can subtract tax credits from the total amount of tax they owe. To claim a credit, taxpayers should keep records demonstrating their eligibility. Some major tax credits include the child tax credit, the child and dependent care credit, the American opportunity credit or lifetime learning credit, and the earned income tax credit.

*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.gov8

Footnotes and Sources

1. The Wall Street Journal, June 28, 2024
2. The Wall Street Journal, June 28, 2024
3., June 27-28, 2024
4. AP News, June 27, 2024
5. Reuters, June 26, 2024 
6., June 28, 2024
7., June 25, 2024

Stock market calendar this week:


9:45 AM S&P final U.S. manufacturing PMI
10:00 AM Construction spending
10:00 AM ISM manufacturing
9:30 AM Federal Reserve Chair Jerome Powell speech in Portugal
10:00 AM Job openings
TBA Auto sales
6:30 AM New York Fed President John Williams speech in Portugal
8:15 AM ADP employment
8:30 AM Initial jobless claims
8:30 AM U.S. trade deficit
9:45 AM S&P final U.S. services PMI
10:00 AM Factory orders
10:00 AM ISM services
2:00 PM Minutes of Fed’s June FOMC meeting
None scheduled, July 4 holiday
5:40 AM New York Fed President John Williams speech in India
8:30 AM U.S. employment report
8:30 AM U.S. unemployment rate
8:30 AM U.S. hourly wages
8:30 AM Hourly wages year over year


Most anticipated earnings for this week:

Did you miss our last blog?

Forefront Market Notes: June 24th


About Amit: I am a first generation American, the son of a working-class Indian family, and I lived through my parents’ struggle to find their place in this country, to put down roots that would sustain them as well as their children in a new land. As they encouraged me to excel in school and fostered my hobbies and interests, I was keenly aware of the dynamic between them. I understood that there was a difference between where they came from individually and where we were now. They worked hard in their individual capacities, but they weren’t always on the same page about financial issues – and that can make or break a family’s future. I didn’t know it at the time, but this laid the groundwork for my passion towards financial services and helping families succeed.