Uncertainty leading up to the Presidential election brought about volatility in the equity markets while bonds were weighed by a resurgence in inflation fears. Equity and fixed income markets will digest the outcome of the election over the next few weeks, in anticipation of more detailed and concise fiscal policy objectives by the elected administration.
Fiscal policy, expanding federal deficits, and continued issuance of tremendous government debt drove bond yields higher in October. The expectation of deregulation and low corporate tax rates drove equities higher in response to the election results.
The financial aftermath of Hurricanes Milton and Helene, were made apparent by economic and employment data released in October, revealing a slowdown in consumer activity and dismal jobs growth. The affects of the hurricanes were felt nationwide as distribution routes, energy facilities, and travel were hindered.
Mortgage rates rose for the fifth week in a row, ending October with a 6.72% average rate for a 30 year fixed mortgage. The average rate had fallen to 6.08% at the end of September, then steadily began to rise as bond yields rose throughout the month.
Print Version: Macro Economic Overview Nov 2024