The third quarter of 2024 brought significant fluctuations in the financial markets. Despite closing in positive territory, it was a bumpy ride marked by concerns over economic data, surprise rate moves, and heightened volatility. In our latest video, Justin Kittle explores the factors behind this market turbulence and the Federal Reserve’s recent actions to address economic uncertainties.

Early in the quarter, markets reacted sharply to global developments, including a surprising rate hike from Japan and fluctuating U.S. economic data. The volatility index (VIX) spiked to a four-year high, reflecting heightened investor anxiety. Yet, just as quickly as stocks dropped, they rebounded, highlighting the unpredictable nature of today’s market environment.

The Federal Reserve’s decision to cut rates for the first time in four years is top of mind for many investors. Historically, rate cuts have often supported economic growth by lowering borrowing costs and boosting consumer spending. Drawing parallels to the mid-1990s, when similar actions helped sustain a period of economic expansion, this could bode well for markets going forward.

In the video, Justin also touches on current global risks, including geopolitical tensions and the upcoming U.S. elections, which could influence market behavior in the short term. However, the long-term outlook remains constructive, with anticipated rate cuts expected to provide support to the broader economy.

As always, our team is here to answer any questions you may have.