Strong Start to 2024 for U.S. Stock Markets

April saw a reversal in the fortunes of major U.S. stock indices following a robust performance in March. Amid rising Treasury yields, the focus shifted towards corporate earnings and the Federal Reserve's policy meeting as the month drew to a close. Monthly Performance Snapshot The indices showed a notable pullback in April. The S&P 500 fell by 4.16%, while the Nasdaq 100 dipped by 4.46%. The Dow Jones Industrial Average saw a decrease of 5.00%, rounding off a month marked by corrective movements across the board. Break in the Winning Streak After delivering impressive returns to investors in early 2024, U.S. stock indexes took a modest step back. Both the S&P 500 and Nasdaq 100 ended their five-month winning streaks, experiencing their first negative month since October last year. This pause is a reminder that market trajectories are rarely linear. Inflation Dynamics Recent inflation figures paint a complex picture:  Consumer Price Index (CPI): The CPI for March rose by 0.4% month-over-month and 3.5% year-over-year, surpassing expectations and indicating persistent inflationary pressures. Notably, car insurance and shelter costs have surged, further straining consumer budgets. Producer Price Index (PPI): The PPI data provided some relief, showing a milder than expected increase in wholesale prices. Despite a year-over-year rise, the day's market response was overwhelmingly positive, underscoring a cautiously optimistic outlook from investors. Federal Reserve's Stance The Federal Reserve maintained interest rates between 5.25% and 5.50% in its May meeting, signaling a cautious approach towards rate adjustments. The persistence of higher inflation rates suggests that discussions about rate cuts might be premature. Market Reactions to Fed Developments Initial reactions to the Federal Reserve's announcements were positive, with significant index gains. However, sentiment shifted later in the day, highlighting the market's sensitivity to the Fed's future policy directions. Interest Rate Trends April saw a continuation of rising interest rates in the open market, reflecting a decreasing likelihood of rate cuts within the year. The impact of these higher rates is palpable, particularly in sectors like mortgage lending, where rates have climbed significantly. Labor Market Overview The latest employment data presented a mixed bag, with payroll numbers falling short of expectations but offering a silver lining for rate cut proponents. This "bad news is good news" scenario suggests a potential cooling off, which could influence future inflation trajectories and Fed actions. Cryptocurrency Market Adjustments Cryptocurrency markets also felt the heat in April, with Bitcoin experiencing significant downturns. The changing interest rate environment and diminishing rate cut prospects played a crucial role in shaping investor sentiment in this sector. Earnings Season Highlights The earnings landscape was vibrant, with major tech companies like Alphabet and Microsoft exceeding expectations, buoyed by substantial AI investments. However, the broader market faced challenges from ongoing inflation and interest rate concerns. Conclusion April was a testament to the delicate balance between macroeconomic indicators and corporate performance. As Clare Market Investments, LLC continues to monitor these developments, we remain committed to providing our clients with timely and insightful analyses to navigate these complex market dynamics.

DALLAS, TX – May 26, 2020 – Clare Market Investments, LLC, a Dallas-based Registered Investment Advisor, today announced relocation of its offices to a stand-alone, state-of-the-art building in Dallas, TX.  The move stems from Clare Market’s tremendous growth in the last year, and the firm’s desire to maintain close contact with its clients. Moving to a stand-alone facility was a proactive choice in response to the COVID-19 pandemic. The larger space, outside of a conventional office tower, accommodates and reaffirms the firm’s growth strategy while protecting its employees, clients, and industry partners. “There were several reasons why we chose this particular time to relocate,” said Keith Rhodus, founder and managing member of Clare Market Investments. “Our commitment to growth and expansion was a major influence. The new offices offer an expanded footprint which affords us space to continue our growth. West Lovers Lane is an exciting and desirable part of town, surrounded by high-end retail, great restaurants, as well as professional offices, all within convenient proximity to Dallas Love Field Airport. Relocating to a stand-alone building affords us the ability to continue to serve our clients outside of a conventional office tower, in a less crowded environment that we can closely monitor and control.” About Clare Market Investments, LLC Clare Market Investments, LLC, is a cutting-edge, technology-savvy, registered investment advisor and financial planning firm serving individuals, family offices, and private family foundations. Please visit our website claremarket.com for more information. Media Contact: Priya Intwala Client Service and Operations Manager Clare Market Investments, LLC priya@claremarket.com 86 6 .659.1019 x705