What happened this week

Major US stock indexes closed last week down, the Dow Jones industrial average dropped by 483 points, or 1.6 percent, at Friday’s close, and fell below the 30,000 mark, the S&P 500 slid by 1.7 percent, and the Nasdaq Composite by 1.8 percent. Blue-chip stocks plunged to their lowest level since 2020 on Friday.

Last week, U.S. crude futures also fell 6% to their first close below $80 a barrel since Jan. 11 and US and UK Government-bond yields hit their highest level in more than a decade.

On Wednesday, the Federal Reserve approved a third consecutive 75-basis-point hike in interest rates, raising the central bank's benchmark lending rate to a new range of 3%-3.25%., this is the highest the fed funds rate has been since the financial crisis of 2008.

The effects of high inflation were evident in the September levels for confidence among builders in the U.S. housing market. The National Association of Home Builders/Wells Fargo Housing Market Index, which measures the single-family housing market, fell for the ninth consecutive month to 46.(Anything below 50 is considered negative). Investors fear the combination of high inflation and high interest rates will continue to bring the housing market dow.

Looking ahead to this week:

Tues Sept 27: Durable goods orders (measure of current industrial activity)

S&P Case Shiller US Home Price Index (bench mark for average price of single family homes)

Thurs Sept 28: Q2 Real Gross Domestic Product revision

Fri Sept 30: Core PCE Index (measure of prices for US goods and services)

Editor’s note

We would like to announce the arrival of Miriam Isabel Rodriguez, who was born on Wednesday August 31 to Claudia and her husband Israel. Mother and child are both well. We thank God for this miracle.