In this week's episode, the Money Wise guys provide a positive update on the recent performance of major stock indices, with the Dow Jones Industrial Average up by 491 points or 1.2%, the S&P 500 increasing by 81 points or 1.5%, and the NASDAQ rising by 345 points or 2.1%. Year-to-date figures show substantial gains, with both the S&P 500 and NASDAQ up by 11.2%. They also delve into recent economic reports that have influenced market sentiment, particularly the Consumer Price Index (CPI) and Producer Price Index (PPI). The CPI for the month was reported to increase by 0.3%, which was below the expected 0.4%, signaling a slight cooling of inflation, a positive signal for the markets. This was further supported by a downward revision in the previous month's PPI, which also had a calming effect on the market's inflation concerns. These developments contributed to all three major indices reaching all-time highs during the week, with the Dow closing above 40,000 for the first time on Friday. Looking ahead, the Money Wise guys discuss the potential impact of upcoming earnings from major tech companies like Nvidia, emphasizing the importance of their financial results in sustaining market momentum. They noted that continued positive earnings, particularly from leading tech firms, could further bolster investor confidence and drive market performance as the year progresses.

The cooling of inflation, as indicated by recent lower-than-expected Consumer Price Index (CPI) figures, is generally positive for the markets for several reasons. Firstly, it alleviates concerns about the rising cost of living and the potential for eroded consumer purchasing power, which can stifle economic growth. Lower inflation also reduces the pressure on the Federal Reserve to hike interest rates, which is favorable for investment prices as higher interest rates typically lead to lower stock valuations. Furthermore, with less inflationary pressure, businesses face lower input costs, potentially leading to improved profit margins. Overall, a cooling of inflation fosters a more stable financial environment, encouraging investment and contributing to the overall health of the stock market.

In the second hour today, the Money Wise guys share their ‘Are You Ready for Retirement’ quiz. You don’t want to miss the details! Tune in for the full discussion on your favorite podcast provider or at davidsoncap.com, where you can also learn more about the Money Wise guys or take advantage of a portfolio review and analysis with Davidson Capital Management.