Stay Informed With Our Midyear Market Update

Preston Rosamond |

It’s hard to believe we’re halfway through 2024—have you stopped to notice how your financial progress is going? If not, now is a perfect moment to hit pause and check in on the economic trends shaping both our market and your financial portfolio. Despite the difficulties and hurdles of 2023, we’ve spotted some promising developments in key sectors during the first half of this year.

Keep reading for a deeper dive into our midyear market update, where we break down the latest happenings and help you gear up for the months ahead. Ready to plan your next moves? 

Markets Are Up

So far in 2024, financial markets have shown steady, positive performance. While the Dow Jones took a dip in May, the S&P 500 extended its bull market gains into the end of the month. 

Around the same time, the Federal Reserve unanimously chose to keep policy rates unchanged for the sixth meeting in a row, and rates have remained steady since the beginning of 2024. That being said, strong inflation numbers from the first quarter suggest that hitting the 2% inflation target might take longer than anticipated. What’s more, the U.S. GDP has shown positive but slower-than-expected growth coming out of the first quarter. 

This combination of stable interest rates, persistent inflation, and soft GDP growth suggests that the market may see some cautious optimism but also volatility as investors figure out their next moves. How these factors will shape the stock market for the remainder of 2024 is still largely uncertain.

Employment Remains Strong

As of May 2024, the U.S. employment scene shows steady progress with an unemployment rate of 3.9%, which translates to about 6.5 million job seekers. In fact, many leading economists have noted that the labor market remains strong and stable, offering inflation-adjusted pay raises to the average worker. Additionally, real hourly earnings, which are wages adjusted for inflation, grew by 0.5% in April 2024 compared to the previous year.

GDP Is Soft

Despite facing numerous challenges, U.S. consumer spending remained strong throughout 2023. However, this momentum has started to fade. In the first quarter of 2024, the economy posted an annualized GDP growth of 1.3%, which was slightly below the forecasted 1.6%. Additionally, consumer spending grew by 2%, falling short of the anticipated 2.5%.

For 2024, real GDP (GDP adjusted to remove the effects of inflation) is projected to slow to 1.5% in 2024. Looking ahead, real GDP growth is expected to average 2.0% annually from 2024 to 2027—slightly below last year’s prediction of 2.5%.

The Federal Reserve, Interest Rates, and Inflation 

The Federal Reserve has raised its key interest rate to the highest level in 16 years to combat high inflation. After a streak of 11 rate hikes between 2022 and July 2023, the Federal Reserve has continued to hit pause for 2024 while reassessing the current economic growth and inflation. Inflation still remains above the Fed’s 2% target, though it remains lower than its peak of 9.1% in 2022. It’s yet to be seen whether interest rates, or inflation, will bounce back higher and hamper the economy for the remainder of 2024. 

Global Economies Face Similar Issues

Global growth is projected to continue growing at 3.2% for the remainder of this year and into 2025, the same pace as 2023. The global growth forecast for five years from now is the lowest we’ve seen in decades, largely due to the tight policies needed to manage inflation, price instability, and continued geopolitical tensions. Inflation is expected to decline to 5.9% in 2024 and 4.5% in 2025. Despite the cautious outlook, the MSCI All Country World Index is up over 7% so far this year.

Stay Ahead of the Game for 2024

Now that you’ve received all the latest trends, let’s talk about planning and strategy! Understanding the economic outlook is just the start—navigating the remainder of 2024 requires a proactive approach.

Take a moment to think about your future: Are you setting aside enough for retirement? How much can you safely withdraw annually from your accounts? Are your investments aligned with your financial objectives and risk tolerance? While we can’t predict the actions of the Federal Reserve, Congress, or inflation, we can take measures to shield our financial well-being. It’s all about creating a robust and comprehensive financial plan.

At The Rosamond Financial Group, we work to create personalized financial plans tailored to guide you toward financial success. Our unique approach is designed to help you thrive in any market condition. To learn more about how we can help, call my office at 830-798-9400 or email

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About Preston

Preston Rosamond is a financial advisor and the founder of The Rosamond Financial Group Wealth Management, LLC with over two decades of industry experience. He provides comprehensive wealth management and financial services to successful business owners, corporate executives, and affluent retirees who enjoy simplicity and seek a professional to help them pursue their goals. Preston personally serves his clients with an individual touch, a sincere heart, and his servant’s attitude is evident from the moment you meet him. Learn more about Preston or start the conversation about your finances with him by emailing or schedule a call on his online calendar.