Markets with Megan: A Quick Financial Markets Update

The December jobs report shows stronger-than-expected job creation, but raises questions about inflation and interest rates. CIO of Verdence, Megan Horneman, dissects the implications of this employment data, including its effects on wage inflation, market reactions, and future Fed policy decisions.   • Jobs growth at 256,000, surpassing expectations • Wage inflation remains a sticky challenge for...

Welcome to the first episode of Markets with Megan in 2025! Join Megan Horneman, Chief Investment Officer at Verdence Capital Advisors, as she reviews the latest ISM Services Index report and what it reveals about consumer spending trends. 🔎 Key Highlights: - How the service sector drives U.S. GDP and inflation. - Sticky inflation: Why service-related spending pressures persist. - The rise in the...

The Fed's latest rate cut surprises the markets, revealing a shift in their inflation outlook and reducing anticipated cuts for next year. Investors react negatively, reassessing economic projections and adjusting their strategies accordingly. Verdence CIO, Megan Horneman recaps the last 24 hours and what to anticipate into the new year: - Fed cuts interest rates by 25 basis points, but marke...

The equity markets show signs of recovery after yesterday's steep selloff following the Fed's latest actions. Today, December 19th, we explore what's driving this rebound and analyze key economic data, including an upgraded GDP growth rate for Q3. Consumer spending remains resilient, with a notable boost in service sector activity and exports. Join us for insights into these develop...

Can a string of robust retail sales figures foretell the Federal Reserve's next move on interest rates? In this episode, Verdence CIO Megan Horneman recaps November's retail sales report that exceeded expectations for three months in a row. Amidst the holiday shopping frenzy, auto sales and a surge in internet shopping have influenced the retail landscape, while sectors like clothing and...

How does a significant dip in the ISM Services Index affect the Federal Reserve's tightrope walk between inflation control and economic growth? Verdence CIO Megan Horneman uncovers the latest twists in the U.S. service sector's journey through expansion territory, with the index experiencing its sharpest drop since June. Unpack the mixed signals sent by November's data, where a broa...

In this podcast episode, "Markets with Megan," Megan recaps the pivotal economic and political developments of November 2024, marked by President Trump's return to the White House and Republican congressional dominance. This political clarity spurred an equity rally but also brought inflation challenges, particularly in services and housing. Megan takes a look at the Federal Reserve...

Break down the key insights from the November 7th FOMC meeting with Verdence CIO Megan Horneman. What does a balanced risk between inflation and employment mean for the future of rate cuts? Megan explores this cautious yet open-minded stance and what it signals for the economy. Find out how firms' hiring selectivity and reluctance to raise prices paint a complex picture of the current landsca...

In this episode, Verdence CIO Megan Horneman breaks down last week’s market turbulence following comments from the Federal Reserve and new inflation data. After a period of post-election optimism, reality set in as Fed Chair Jerome Powell highlighted the challenges of persistent inflation and the uncertainty surrounding future interest rate cuts. Key economic indicators, including retail sales and...

In today’s episode, Verdence CIO Megan Horneman, breaks down the latest Consumer Price Index (CPI) report for October, highlighting the persistent contributors to inflation. Despite a year-over-year headline increase of 2.6%, the core CPI remains high at 3.3%. A key factor? The service sector continues to drive inflation, with services excluding energy up 4.8% from last year. Housing costs, partic...

In this episode, Verdence Chief Investment Officer Megan Horneman breaks down the latest Federal Reserve decision to cut interest rates by 25 basis points, bringing them to a target range of 4.50% to 4.75%.  Megan discusses the Fed's shift in language regarding inflation, highlighting their updated focus on "progress" rather than "gaining confidence" in achieving their 2%...

"The Results Are In!" In this episode, Megan Horneman, Verdence CIO, dives into the market's response to the recent presidential election, where Donald Trump was elected as the 47th President of the United States. As the Republican Party gained control of the Senate and is on track to secure the House, markets responded with a historic rally, with the Dow Jones surging over 1,000 po...

Are rising inflation rates set to challenge the recent market rally? In our latest update, we unpack September's Core PCE reading, showing the largest monthly increase since April, reflecting pressures in service costs, including healthcare, and unexpected growth in goods prices like clothing and vehicles. With Core PCE up 2.7% over last year, just above forecasts, we examine the key factors...

What if the backbone of our economy is powered by consumers spending on borrowed time? Today, Megan reviews the third-quarter GDP report, revealing how a modest 2.8% growth rate is largely driven by relentless consumer spending and federal government contributions. Despite the growth coming in slightly below expectations, the consumer's role in bolstering the economy is undeniable. She examin...

What if the recent surge in consumer confidence defies your expectations? Join us as we unpack the latest report showing an unexpected rise to levels not seen since December 2022. Hear why optimism in the job market could be a game-changer, even as it challenges recent employment data. We explore the intricate balance between consumer sentiments and the real economic indicators, all while keeping...

What's behind the market's current turbulence? Megan Horneman, Verdence CIO, looks at the impact of regional bank instability, sparked by New York Community Bank Corp's recent earnings revelation. Imagine the anxiety rippling through investors as the bank reports no profit potential until 2026. Could this be a harbinger of more widespread financial woes? Listen to see how these unse...

In this episode of Markets with Megan, CIO Megan Horneman discusses the latest developments in the third-quarter earnings season for the S&P 500. With financials kicking off the reporting, Megan highlights key trends such as banks' mixed decisions on loan loss reserves and the implications for consumer debt—especially the rise in credit card usage amid soaring interest rates. She breaks d...

Could the rising tide of inflation sink consumer confidence for good? Join us as we dissect the latest economic indicators, including the Consumer Price Index and Producer Price Index, and uncover why the Federal Reserve may have a tough road ahead dealing with sticky inflation in the service sector and surging food prices. We break down what the numbers reveal and explore the implications for fut...

In this episode of "Markets with Megan," the focus is on the significant role tech giants are playing in the current bull market, with the S&P 500 surging nearly 70% since October 2022. A striking 96% of the total returns come from just five companies—NVIDIA, Meta, Broadcom, Microsoft, and Apple—demonstrating the uneven growth across market sectors.  The driving forces behind this bu...

In the latest episode of Markets with Megan , the discussion centers around the surprising rise in inflation as revealed by September’s Consumer Price Index (CPI) data. Both headline and core inflation exceeded expectations, with core inflation hitting 3.3%, up from the projected 3.2%. Despite falling gasoline prices, the cost of services, food, and goods surged, with service inflation proving esp...

In the latest episode of Markets With Megan, Megan discusses the Federal Reserve's September 50 basis point rate cut, which sparked curiosity and debate across economic spheres. While the move might seem straightforward, the episode reveals the complex dynamics behind it. This is drawing from newly released meeting transcripts. These transcripts offer a glimpse into the deliberations behind c...

September's astonishing jobs report defied all expectations with a staggering 254,000 new jobs added to the U.S. economy. The sectors of leisure, hospitality, education, and healthcare are leading this surge, showcasing robust consumer spending and economic vitality. Unravel the household employment changes and their pivotal role in nudging down the unemployment rate for the second month in a...

How will the Federal Reserve's aggressive rate cut impact your investments, and what does a positive yield curve mean for your portfolio? Megan Horneman breaks down the Fed's first 50 basis point rate cut since 2020, the yield curve turning positive for the first time since 2022, and easing inflation trends. Explore the ongoing struggles in the manufacturing sector and emerging cracks in...

What if the Federal Reserve's latest decision could reshape the economic landscape? Join us as we dissect the seismic impact of the Fed's bold move to cut interest rates by 50 basis points on September 18th. We'll unpack the intimate details from the meeting, from GDP projections and employment forecasts to the anticipated path for inflation and the Fed funds rate. Discover why the...

What if history could predict the future of our economy? This is an eye-opening discussion on the implications of the Federal Reserve's latest moves, and why their aggressive interest rate hikes could be a double-edged sword. We'll uncover why this tightening cycle is one of the most intense since 1945, and reflect on how previous cycles have led to significant economic downturns. Was th...