Forefront’s Market Notes:
September 30th, 2024
Stocks moved higher last week, continuing to build on the momentum generated after the Federal Reserve decided to cut short-term rates by 0.50 percent.
The Standard & Poor’s 500 Index gained 0.59 percent, while the Nasdaq Composite rose 0.95 percent. The Dow Jones Industrial Average added 0.62 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, gained an eye-catching 3.53 percent.1,2
Congress Passes Spending Bill
Stocks started the week tepidly but in the green, as investors mostly shrugged off Tuesday’s weak consumer confidence report. Then, at midweek, markets put on the brakes as investors appeared to take profits after a four-day winning streak.3,4
On Thursday, markets rallied on news that the final Q2 gross domestic product estimate showed the economy increased at an annual rate of 3.0 percent. Then Friday, the PCE, or Personal Consumption and Expenditures Index, showed inflation had cooled slightly more than expected in August, which some believe may influence the Fed’s decisions on short-term rates at its November meeting.5
Finally, a continuing resolution was passed by both houses of Congress last week and signed by President Biden Friday morning, assuaging concerns over a government shutdown. The resolution funds the government until December 20.6
Source: YCharts.com, September 28, 2024. Weekly performance is measured from Monday, September 23, to Friday, September 27. 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.
China’s Stimulus Package
This week, the head-turning performance came from outside the U.S.
As measured by the MSCI EAFE (Europe, Australia, and Far East) Index, international stocks rose more than 3 percent following news of China’s stimulus package, which could be as much as 2 trillion yuan, or $284 billion. China’s program also cut banks’ reserve requirements and lowered a key short-term interest rate.
While the EAFE Index doesn’t track stocks from Mainland China, the stimulus package had far-reaching implications for other countries.7,8
Selling Your Car or Buying From a Private Seller?
Here Are the Tax Tips You Should Know
If you’re selling your car for less than what you paid, you likely won’t need to pay any sales tax because the Internal Revenue Service (IRS) considers selling a used car for less than what you paid a capital loss. However, if you’re selling your car for more than what you paid (like if it’s a classic car you’ve restored and it’s increased in value), you may need to pay sales tax.
If you’re buying a car from a private seller, you may need to pay sales tax, but this sales tax doesn’t go to the seller – it goes to the Department of Motor Vehicles and is part of your car’s registration.
*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 CarGurus9
Footnotes and Sources
1. The Wall Street Journal, September 27, 2024
2. Investing.com, September 27, 2024
3. CNBC.com, September 24, 2024
4. CNBC.com, September 25, 2024
5. BEA.gov, September 26, 2024
6. The Wall Street Journal, September 22, 2024 OR
The Hill, September 25, 2024
7. The Wall Street Journal, September 27, 2024
8. The Wall Street Journal, September 27, 2023
9. cargurus.com, May 8. 2024
Stock market calendar this week:
| Time (ET) | Report |
| MONDAY, SEPT. 23 | |
| 8:00 AM | Atlanta Fed President Raphael Bostic speaks |
| 9:45 AM | S&P flash U.S. services PMI |
| 9:45 AM | S&P flash U.S. manufacturing PMI |
| 10:15 AM | Chicago Fed President Austan Goolsbee speaks |
| 1:00 PM | Minneapolis Fed President Neel Kashkari speaks |
| TUESDAY, SEPT. 24 | |
| 9:00 AM | Federal Reserve Governor Michelle Bowman speaks |
| 9:00 AM | S&P Case-Shiller home price index (20 cities) |
| 10:00 AM | Consumer confidence |
| WEDNESDAY, SEPT. 25 | |
| 10:00 AM | New home sales |
| 4:00 PM | Federal Reserve Governor Adriana Kugler speaks |
| THURSDAY, SEPT. 26 | |
| 8:30 AM | Initial jobless claims |
| 8:30 AM | Durable-goods orders |
| 8:30 AM | Durable-goods minus transportation |
| 8:30 AM | GDP (second revision) |
| 9:10 AM | Federal Reserve Governor Adriana Kugler and Boston Fed President Susan Collins speak together |
| 9:15 AM | Federal Reserve Governor Michelle Bowman speaks |
| 9:20 AM | Federal Reserve Chair Jerome Powell gives opening remarks |
| 9:25 AM | New York Fed President John Williams speaks |
| 10:00 AM | Pending home sales |
| 10:30 AM | Federal Reserve Vice Chair for Supervision Michael Barr speaks |
| 10:30 AM | Federal Reserve Governor Lisa Cook speaks |
| 1:00 PM | Minneapolis Fed President Neel Kashkari speaks with Fed Vice Char for Supervision Michael Barr |
| FRIDAY, SEPT. 27 | |
| 8:30 AM | Personal income |
| 8:30 AM | Personal spending |
| 8:30 AM | PCE index |
| 8:30 AM | PCE (year-over-year) |
| 8:30 AM | Core PCE index |
| 8:30 AM | Core PCE (year-over-year) |
| 8:30 AM | Advanced U.S. trade balance in goods |
| 8:30 AM | Advanced wholesale inventories |
| 8:30 AM | Advanced retail inventories |
| 10:00 AM | Consumer sentiment (final) |
| 1:15 PM | Federal Reserve Governor Michelle Bowman speaks |
Most anticipated earnings for this week:
Did you miss our last blog?
Forefront Market Notes: September 23rd
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.