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Market Snapshot: This Week at a Glance

Stocks jumped Monday as oil fell, slipped Tuesday after hot October inflation, bounced back Wednesday, then stumbled Thursday when Nvidia CEO Jensen Huang resigned and the 10-year Treasury yield closed back above 5%.

Equities and Rates

The S&P 500 slipped 0.35% Thursday to 7,592.40 and the Nasdaq Composite fell 0.39% to 25,366.09, while the Dow lost 0.36%.

Nvidia's Market Reaction

Nvidia dropped as much as 14% on Huang's resignation before recovering to close down about 4%.

Inflation and Jobs Data

October CPI rose 0.4% (0.3% expected), with core up 0.3%, and last Friday's jobs report added 165,000 jobs (about 62,000 expected).

Fed's Position

The Fed raised rates in September and held on Oct. 28 in a 10-2 vote, with two dissents in favor of a hike.

Client Strategy for Rates

Audit floating-rate debt, check bond duration against client timeline, and put idle cash to work with money market funds and T-bills.

2027 Tax Adjustments

The IRS released 2027 tax inflation adjustments, raising the standard deduction to $33,200 for joint filers and the top 37% bracket to $661,375 for single filers.

Nvidia's CEO Exit

Nvidia CEO Jensen Huang resigned Thursday morning after reports about his personal conduct and questions about whether Nvidia chips reached China through a customer in Singapore.

ETFs for Rising Rates

Short-Term Treasury ETFs like SGOV, BIL, and VBIL offer yields up to 4.67% with minimal rate risk for clients needing cash soon.

Client Communication Opportunity

Distributions in taxable accounts are taxable even when reinvested, so screen holdings against year-end estimates and discuss tax strategies.

Prediction Markets Tax Impact

Clients who traded prediction markets may owe tax on break-even years if winnings are classified as gambling income.

Social Security Cost-of-Living Adjustment

The 2027 Social Security cost-of-living adjustment is 5.51%, combining a 1.40% fixed rate with an inflation component that resets every six months.

Advisor Takeaways

Plan for higher rates, not a forecast: audit floating-rate debt, match bond duration to client needs, and update 2027 tax assumptions.

Number of the Week

The 2027 Social Security cost-of-living adjustment is 5.51%, the largest since 2023.

Quote of the Week

Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in the corrections themselves.

“Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in the corrections themselves.”