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The major stock market averages rallied Friday, with the Dow Jones Industrial Average gaining over 440 points (just over 1%), and the NASDAQ Composite and Standard & Poor’s 500 Index both adding over 1% as well.  The catalyst for the end of week rally was the U.S. jobs report that came in stronger-than-expected.  The Bureau of Labor Statistics reported the economy added 139,000 jobs last month, versus market expectations for a gain of 125,000 jobs.  The healthy report eased concerns about an imminent economic slowdown.     The market also benefitted from reports the U.S and China would be discussing trade relations.  For the week in total – the Dow gained 1.2% to 42,763, the NASDAQ jumped 2.2% to 19,530 and the S&P rose 1.5% to 6,000.36 – surpassing the psychologically important 6000 level for the first time since late February.  While there is still plenty of uncertainty surrounding tariffs and global trade, the market has recovered its tariff-induced losses.  Not only is there conviction the worst-case scenario will be avoided, but there is also optimism the end result of tariffs will be manageable.     Progress in Washington with the tax and spending bill, developments on trade relations, and key economic (inflation) data will all test whether the stock market can remain in rally mode.  The Consumer Price Index for May is scheduled to be released Wednesday morning.  Consensus forecasts are for a 2.5% year-over-year increase.  The core CPI, which excludes food and energy, is expected to rise 2.9%.  This is the last major economic data point before the Federal Reserve meets on June 17-18th.     Financial markets are basically certain the Federal Reserve will leave interest rates unchanged at next week’s policy meeting.  CME FedWatch is currently indicating a 99.9% probability the Fed will make no change in rates.  However, investors do still expect two ¼ percentage point interest rate cuts by the end of the year.     The stock market action so far this year is a reminder of how time in the market is more important than timing the market.  The market volatility and drop of approximately 20% in the benchmark Standard & Poor’s 500 Index, along with negative financial headlines and a long list of things to worry about economically and geopolitically certainly made many market participants think of getting out of the stock market.  Yet is only June and stocks are relatively back to and near their all-time highs.  Trying to time short term entry and exit points is typically not productive, and often harmful to overall performance.     The stock market is inherently volatile.  Corrections and bear markets are inevitable.  Stay the course that is right for you specifically and invest for the long term!     As always, please contact us with any questions you may have or if you would like to schedule a meeting.     All the best – Southport Station Financial Management, LLC

Weekly Rally – Monday Morning Market Memo – June 9, 2025

The major stock market averages rallied Friday, with the Dow Jones …

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May Rally – Monday Morning Market Memo – June 2, 2025

May Rally – Monday Morning Market Memo – June 2, 2025

The major stock market averages posted nice gains last month.  …

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Weekly Market Surge & Look Ahead – Monday Morning Market Memo – May 19, 2025

Weekly Market Surge & Look Ahead – Monday Morning Market Memo – May 19, 2025

The Standard & Poor’s 500 Index rose every day last week, and …

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Monday Morning Market Surge – Monday Morning Market Memo – May 12, 2025

Monday Morning Market Surge – Monday Morning Market Memo – May 12, 2025

The major stock market averages all opened and are trading …

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Earnings Update – Monday Morning Market Memo – May 5, 2025

Earnings Update – Monday Morning Market Memo – May 5, 2025

Continuing on from last week with our focus on Earnings Season: Starbucks stock …

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Earnings Parade – Monday Morning Market Memo – April 28, 2025

Earnings Parade – Monday Morning Market Memo – April 28, 2025

Beginning with a look at last week and to get a …

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Earnings Season – Monday Morning Market Memo – April 21, 2025

Earnings Season – Monday Morning Market Memo – April 21, 2025

We hope you all enjoyed the long holiday weekend!  As …

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Tariff Turmoil – Monday Morning Market Memo – April 7, 2025

Tariff Turmoil – Monday Morning Market Memo – April 7, 2025

According to an AI generated definition, a tariff is a tax …

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Market Headwinds – Monday Morning Market Memo – March 31, 2025

Market Headwinds – Monday Morning Market Memo – March 31, 2025

Stocks fell sharply on Friday – with the Dow Jones Industrial …

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Stocks Break Weekly Losing Streak – Monday Morning Market Memo – March 24, 2025

Stocks Break Weekly Losing Streak – Monday Morning Market Memo – March 24, 2025

The Standard & Poor’s 500 Index added .5% last week to 5,668.  …

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The major stock market averages posted a solid rally last Friday – the Dow Jones Industrial Average rose 1.7% (or 675 points), the Standard & Poor’s 500 Index advanced 2.1%, and the NASDAQ Composite jumped 2.6% (its best day of the year, according to Reuters).  Factors behind the Friday rally included some bargain hunting, a buy-the-dip mentality after the S&P 500 hit correction territory earlier in the week, and some relief the U.S. government would avoid a shutdown.  Additionally, no new tariff headlines rattled the nerves of investors.  Still, despite the daily rally, the major indices posted another notably negative week.     On the week, the Dow fell 3.1% to 41,488 – the S&P fell 2.3% to 5,639 – the NASDAQ fell 2.4% to 17,754.  The S&P and NASDAQ have now both dropped for the fourth consecutive week.  Negative sentiment surrounding tariffs and weakening consumer confidence numbers prevailed and pushed the stock market lower.  The pessimistic mood and selling pressure came despite some better-than-expected data on the inflation front that was released last Wednesday and Thursday.     Looking to the week ahead, investors will be watching the upcoming Federal Reserve policy meeting.  According to CME FedWatch, the probability is 99% the Fed will leave interest rates unchanged when they announce their policy decision on Wednesday afternoon.  While the market is essentially certain there will be no change in rates, it will be closely watching for any new commentary or clues regarding the Fed’s view on the health of the economy and the outlook for upcoming interest rate policy.     Also in the week ahead, a few notable earnings reports will come in, including numbers from Nike, Micron Technology, and FedEx.  FedEx is considered a bellwether on the economy, so its report will be closely scrutinized for a read on the strength of the economy.  Overall, financial markets will be primarily focused on continuing developments regarding tariffs and their potential impact/ramifications.     On a market history note, and for all the “gold bugs” out there, the price of gold rose above $3,000 per ounce for the first time ever last week!  Gold is historically known as an inflation hedge and a place money often flows to when there is uncertainty in other areas of the financial markets and economy.  It is also a way to diversify an investment portfolio, and many see it as a hedge against geopolitical risk/tumult.      As always, don’t hesitate to contact us with any questions or if you would like to schedule a meeting.     All the best – Southport Station Financial Management

Weekly Review & Preview – Monday Morning Market Memo – March 17, 2025

The major stock market averages posted a solid rally last …

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Market Update – Monday Morning Market Memo – March 10, 2025

Market Update – Monday Morning Market Memo – March 10, 2025

The stock market rallied Friday, with the Dow Jones Industrial Average and Standard …

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Earnings Wrap & Market Look – Monday Morning Market Memo – March 3, 2025

Earnings Wrap & Market Look – Monday Morning Market Memo – March 3, 2025

Earnings Season for the fourth quarter of 2024 is essentially in …

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Earnings Season – Monday Morning Market Memo – February 3, 2025

Earnings Season – Monday Morning Market Memo – February 3, 2025

We are currently in the heart of earnings season.  Two things …

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Market Update & Big Week Ahead – Monday Morning Market Memo – January 27, 2025

Market Update & Big Week Ahead – Monday Morning Market Memo – January 27, 2025

The major stock market averages all rose for a second …

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  • Team
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