Market Performance: Strong gains so far this year in large technology companies, with NASDAQ 100 Index up over 40% year-to-date, but mixed performance in other categories like dividend-paying and small US companies as well as emerging markets.1
Inflation data for August showed a 3.7% increase in household good prices year-over-year, higher than market expectations.2 Inflation remains above desired levels. Housing and gasoline prices are key drivers of higher prices.
The potential for an economic downturn remains present due to factors like higher interest rates, rising consumer debt, and other financial strains on households like rising energy prices and slowing employment growth.