Jobs, Rates & Resilience

Kelly: 

Hello, everyone. Welcome to this week’s biweekly update. I'm joined today by Alex Phillips. Here's what we're watching:

Markets are entering September with a mix of caution and optimism. The latest labor market revision shows the U.S. added 911,000 fewer jobs over the past year than previously reported. While this was anticipated, it's the largest downward adjustment on record. Combined with a recent spike in jobless claims, concerns about employment are rising.

However, strong corporate earnings and continued profit growth suggest underlying resilience. The Federal Reserve is expected to respond with a quarter-point rate cut next week to support the labor market and maintain momentum.

With that, I’ll turn it over to Alex

Alex:

Thanks, Kelly. Just a couple of quick points:

First, inflation remains under control. The core PCE rose just 0.2% in August, keeping market expectations steady. Bond yields are stable, giving the Fed flexibility to ease rates without risking higher inflation.

Second, corporate earnings were strong in Q2. Over 80% of S&P 500 companies beat estimates, with profits growing more than 11% year-over-year. Oracle was a standout, reporting a 52% surge in cloud infrastructure demand, driven largely by AI.

Overall, we're seeing broad-based strength, especially in tech and financials, supporting a cautiously optimistic investment outlook for the fall.

As always, thank you for your trust and confidence.

Light the Night for LLS

We’re proud to share that we’ll be participating in this year’s Light the Night Walk, supporting the Leukemia & Lymphoma Society in their mission to fight blood cancers.

This inspiring event brings together communities to honor survivors, remember loved ones, and raise funds for critical research and patient support. We’d love for you to join us—whether by walking alongside us or contributing through a donation.

The walk takes place on September 25th, please contact the Team for more information.