Market Commentary, May 28, 2024

Drifting Higher

Stocks have been drifting higher for several weeks as investors search for a catalyst that could drive shares in either direction.

Interest rates can influence market direction, but there hasn’t been much news recently on the rate front.

Federal Reserve officials would like to gradually begin reducing interest rates, but inflation hasn’t cooperated since the new year began.

Consequently, the Federal Reserve is comfortable maintaining its key rate, the fed funds rate, at the current level as it seeks more clarity on potential price developments heading into and through the summer.

Meanwhile, the A.I. narrative hasn’t changed, and the economy is still expanding, although some recent indications suggest that growth may be slowing down.

However, there is not much to suggest that economic activity is about to stall.

In other words, modest economic growth and stable rates have underpinned stocks in a relatively dull rally that has the major indexes at or near all-time highs, according to MarketWatch.

In memory of their valor

As we reflect on Memorial Day, we pause to honor the brave men and women who gave their lives to defend and serve America.

We honor their courage, dedication, and selflessness, which have ensured our freedom and protected our way of life.

Civil War – 620,000 – 750,000 on both sides

World War II – 405,399

World War I – 116,516

Vietnam War – 58,209

Korean War – 36.516

American Revolution – 25,000

War of 1812 – 20,000

Mexican-American War 1846 – 13.283

War on Terror – 7,078

Spanish-American War 1898 – 2,446

Source: Statista.com. Estimates vary on the number of casualties in earlier conflicts.