Financial insights for the week ending November 15, 2024
For the week ending November 15th, the S&P 500 fell by 2.08%, the NASDAQ was down 3.15%, and the Dow Jones Industrial Average dropped by 1.24%.
The stock market faced a challenging week, adjusting to the incoming Trump administration and its key staff nominations. While not all appointments were viewed negatively, many contributed to the market volatility. Additionally, the Consumer Price Index (CPI) rose to 2.6% in October, up from 2.4% in September, indicating a slight uptick in inflation over the past year. On Thursday, Federal Reserve Chair Jerome Powell signaled that interest rates may not decrease as quickly as some market estimates anticipated, emphasizing no urgency in cutting rates. This stance heightened concerns about the economic outlook for 2025, contributing to the week's market volatility.
Next week, investors will be closely monitoring several key economic indicators, particularly housing data, which provides insight into a significant sector of the economy, and one of the continued sore spots in the current economy. However, the spotlight is likely to be on the quarterly earnings reports from Nvidia and Walmart. Nvidia, a leader in artificial intelligence technology, is scheduled to release its fiscal third-quarter results on Wednesday, November 20th. Walmart, the nation's largest private employer and a bellwether on the retail industry, will also report its earnings next week. The continued performance of these companies is crucial, as they reflect current economic trends and consumer behavior.
For this week’s financial planning tip, let’s discuss what a Last Will and Testament cannot do. A Will cannot dictate the distribution of jointly owned assets (like JTROS accounts) or those with designated beneficiaries, such as retirement accounts, life insurance policies, or TOD accounts. These assets pass directly to the co-owner or named beneficiary. It’s also important to note that a Will does not avoid probate; it must go through the probate process to be validated and executed. Understanding which assets are governed by your Will versus those controlled by ownership titles or beneficiary designations is essential to ensuring your estate reflects your wishes. Regularly reviewing your estate plan can help prevent unintended outcomes and ensure your legacy is passed on as intended. https://www.americanbar.org/groups/real_property_trust_estate/resources/estate-planning/intro-wills/
Enjoy your day! Come back next Saturday for our latest commentary. We are here to answer any of your financial questions.