Fed Chairman Jerome Powell, speaking at the Federal Reserve’s “Jackson Hole Symposium” indicated that it’s time for the Fed to start reducing the federal funds rate, -the overnight rate at which banks lend to each other. This rate adjustment was generally anticipated due to recent jobs, unemployment and retail sales reports that indicate an economic slowdown taking hold.
In line with the current thesis impacting our current investing recommendations; the performance of the market is broadening out. The infamous “Magnificent Seven”, the big “Artificial Intelligence” stocks are lessening their grip on the performance of the S&P 500 and the Nasdaq. I must admit, I expected this expansion in the breadth of these markets to happen quicker.