The Pulse on the Economy and Capital Markets: August 8 – 12, 2022

At a glance:

• The markets were universally enthusiastic as stocks, bonds, commodities and crypto were up across the board last week.
• The S&P 500 recovered 50% of its year-to-date losses while the Nasdaq rallied 20% from its lows. What’s behind this? Expectations that inflation will mellow, and the Federal Reserve could start reducing rates early next year.
• The recent drop in gas prices may be the turning point in consumer sentiment regarding the economy. While consumers are feeling better, they are shifting their spending away from gaming and towards social activities, such as traveling, going to concerts and dining out at restaurants.
• The shift in consumer spending has impacted the US video gaming industry as sales declined 13% in the second quarter and are expected to drop 9% this year.
• Tech firms have cited longer sales cycles to businesses is likely hurting future growth rates. Moving forward, companies are scrutinizing their budgets more and reprioritizing their strategy to focus on cost and productivity, specifically the reality of the labor shortage and how they can do more with less.
• As it relates to industry news, we’re reading about how travel economists are forecasting an increase in hotel room prices, container shipping rates decline, Europe’s energy crisis spills over into food prices and investors brace for more US stock market volatility.

Related resources:

• Travel economists forecast an increase in hotel room prices
• No precipitous plunge in container shipping rates, just ‘orderly’ decline
• The great European energy crisis is coming for your food
• Investors brace for more market volatility as earnings estimates slump

Disclosures

Investment advisory services are offered by Aprio Wealth Management, LLC, a Securities and Exchange Commission Registered Investment Advisor.  Opinions expressed are as of the current date (August 15th, 2022) and subject to change without notice. Aprio Wealth Management, LLC shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, the information, data, analyses or opinions contained herein or their use, which do not constitute investment advice, are provided as of the date written, are provided solely for informational purposes and therefore are not an offer to buy or sell a security. This commentary is for informational purposes only and has not been tailored to suit any individual. References to specific securities or investment options should not be considered an offer to purchase or sell that specific investment.

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