Weekly Talking Points for Financial Advisors (8/5/24)

Read the highlights of this week's commentary from Helios:

• US hiring slowed markedly in July and the unemployment rate rose to 4.3% from 4.1%, an almost three-year high, triggering the Sahm Rule, a recession indicator developed by economist Claudia Sahm. July’s job report fueled fears that the Federal Reserve may be waiting too long to lower interest rates. Consequently, the dollar fell 0.7% on Friday amid heightened concerns about the economic outlook.
• Following the Federal Reserve's decision to hold its benchmark rate at a two-decade high, Chair Powell stated that a rate cut could be on the table as early as September. Powell told reporters he “can imagine a scenario in which there would be everywhere from zero cuts to several cuts” over the remainder of the year, “depending on the way the economy evolves.”
• The Nasdaq 100 Index entered correction territory after falling 2.4% on Friday due to a rapid rotation away from technology stocks. The index hit a record high on July 10^th, but over $2 trillion in value was erased in just over three weeks as traders sold off Big Tech. Despite Friday's close at its lowest level since mid-May, the index is up over 10% for the year.

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