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 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