Global Market Recap: 2024 Mid-Year Analysis

This post is by MPD from @MPD – Medium

How Are Early 2024 Market Trends Shaping Up?

The first half of 2024 has been filled with notable economic developments and market trends that are shaping the investment landscape. In a recent podcast, Chris Zhang, CIO of Ascend Interplay Family Office, and Mark Peter Davis, Managing Partner of Interplay, shared their insights on these trends. Their discussion covered everything from employment data and inflation to Fed policies and the global economic outlook. In this article, we’ll delve into the key points from their conversation and explore what these trends mean for investors.

What is the Current State of the U.S. Labor Market?

The U.S. labor market has been a focal point in recent economic discussions. In early June, the non-farm payroll data revealed that 272,000 new jobs were added, surpassing expectations. However, the unemployment rate also increased slightly to 4%, marking the first time it has hit this level in several years. While a higher unemployment rate might seem negative, it aligns with the Federal Reserve’s goals to moderate inflation and economic overheating. Average hourly earnings also grew by 0.4% month-over-month and 4.1% year-over-year. This indicates robust wage growth, which can fuel consumer spending and drive inflation higher if not moderated. The Fed’s challenge is to balance these dynamics to support economic stability.

How is Inflation Impacting the Economy?

Inflation remains a critical issue. The Consumer Price Index (CPI) data showed a slight decrease, with headline inflation at 3% and core inflation at 3.4%. While these numbers are lower than previous months, the (Read more…)