Your Local Resource for Expert Financial Guidance and Support

Weekly Economic Update: November 6, 2023

Stocks ripped higher last week on a dramatic retreat in bond yields triggered by easing inflation and a slowing labor market.

The Dow Jones Industrial Average jumped 5.07%, while the Standard & Poor’s 500 surged 5.85%. The Nasdaq Composite index rocketed 6.61% higher for the week. The MSCI EAFE index, which tracks developed overseas stock markets, gained 3.12%

Stocks Rise
Stocks jumped higher right from the start of the week, shaking off the prior week’s sell-off. The combination on Wednesday of the Fed’s decision to keep rates unchanged, which accompanied dovish comments from Fed Chair Powell, and a reassuring Treasury announcement on future bond sales, sparked a third straight day of gains. Slight employment gains and weak manufacturing data provided an additional impetus.

The rally continued on Thursday following a sharp drop in bond yields that was driven, in part, by substantial productivity gains and decelerating wage growth. When Friday’s monthly employment report was lighter than forecast, yields pulled back further, and stocks added to their week’s gains.

IRS Raises Contribution Limits for Retirement Plans in 2024 

Whether you're just starting to invest for retirement, or looking for ways to optimize your savings, a thoughtful approach can help you achieve your financial goals. The announcement of increased contributions to retirement accounts could help set you up for a better future.

The IRS raised the amount individuals can contribute to their 401(k) plans in 2024 by $500. The contribution limit for employees who participate in 401(k), 403(b), and most 457 plans, as well as the federal government's Thrift Savings Plan is increased to $23,000, up from $22,500.

The limit on annual contributions to an IRA increased to $7,000, up from $6,500. The IRA catch‑up contribution limit for individuals aged 50 and over was amended under the SECURE 2.0 Act of 2022 (SECURE 2.0) to include an annual cost‑of‑living adjustment but remains $1,000 for 2024.

These adjustments are smaller than the raises retirement savers received for 2023 amid high inflation in late 2022. But the 2024 increases still offer a welcome opportunity to put away more funds for retirement.
 

Save the Date: December 7, 2023

Capstone Holiday Party

Details to come!

PARTING SHOT 

It’s fun to joke about Daylight Savings Time but experts say changing clocks is bad for our health and bad for the economy. Steve Calandrillo, a professor at the University of Washington School of Law, has studied the economics of daylight saving time and says he’s an advocate for permanently adopting it.  He and others argue that an extra hour of daylight in the evening could reduce collisions enough to save around $1.2 billion annually in the US alone. Read more via Wired.

Capstone built our reputation on friendly service, impeccable honesty, and respect for every client. Our clients’ needs drive our relationship, and the focus is always on you. We strive to be highly responsive to your requests and are skilled at creating solutions customized to your goals, values, and situation.  Reach out anytime with questions. We're happy to help!

Capstone Investment Financial Group, LLC

Colorado Springs/Denver

719-477-9883

info@capstoneinvest.com