Fast Money Blog- 6/16/23

It's been another interesting week on Wall Street. 

On Tuesday, June 13th, the Consumer Price Index (CPI) report for May showed inflation rose only 4% year-over-year, the slowest pace in more than two years. 

While that remains about twice the rate that was normal before the coronavirus pandemic in 2020, it is down sharply from a peak of about 9% last summer.

This new data offers the latest evidence that the Fed’s push to control the rise of inflation is working.

As much as I have disagreed with the Federal Reserve, in the end I think they did a great job bringing down inflation without harming economic growth. 

On Wednesday, June 14th, the Federal Reserve announced that it was pausing its campaign of raising interest rates for the first time in more than a year. However, officials forecasted two additional rate hikes for the balance of the year to bring inflation back down to their 2% goal. 

As the bull market sets in, stocks that have been out of favor will suddenly begin to retrace. This is why we saw Dow component Nike, Inc. (NKE) advance this week from a low of $105.09 to a high of $114.75 on Friday. 

I expect this upward trend in the S&P 500 and Dow Jones Industrial Average to continue over the next 8 weeks.

Tyrone Jackson

The Wealthy Investor