IN THIS ISSUE:
1. Market Updates;
2. Anticipation of the Fed Decision;
3. IPO Pullback;
+ Soka Dictionary Reference and Top Job Applications
Market Updates
Overall, the market has experienced slight declines this past week, fueled by economic data that did not fully meet investors’ expectations. The Nasdaq Composite dropped 5.6% (its worst week since early 2022), while the S&P 500 and Dow Jones Industrial Average fell 3.7% and 2.5%, respectively. Behind the news is disappointing manufacturing data and Friday’s jobs report, which provided mixed signals.
(Data and image: finance.google.com).
Anticipation of the Fed Decision
First, albeit the US manufacturing activity improved slightly from July, the numbers are still significantly lower than in spring. Second, job growth in August was lower than expected: only 142,000 new jobs were created instead of 161,000 as expected. However, the unemployment rate decreased to 4.2%, which is in line with investor’s expectations. The Federal Reserve’s upcoming September 18th interest rate decision remains relatively certain, with the market anticipating a first rate cut since rate increase campaign. Yet Wall Street is divided on whether the cut will be a quarter-point or half-point.
IPO Pull-back
This Fall, typically a peak season for IPO activity, is seeing fewer deals than anticipated. While there are several reasons, a major factor is recent market volatility. Uncertainty surrounding the upcoming November presidential elections and concerns over a potential tech bubble are causing companies to hesitate. Additionally, despite the small-cap Russell 2000 index outperforming the S&P 500, many companies with recent IPOs are trading below their offering prices. As a result, more firms are opting to postpone their public offerings till the next year.
Soka Dictionary Reference
Rate cut (meaning decrease in federal funds rate): change in an interest rate at which depository institutions (e.g. banks) lend reserve balances to other depository institutions overnight, which affects other interest rates within the economy.
IPO: An Initial Public Offering is a process in which a private company offers its shares to the public for the first time.
Small-cap: A company with a market capitalization (total market value of a company’s outstanding shares) below $2 billion.
Top Finance & Consulting Job Applications
Recalc Finance Accelerator (HIGH PRIORITY: TOP-TIER NETWORKING COMMUNITY)
UBS: 2025 Summer Internship Program – Group Corporate Services
UBS: 2025 Summer Internship Program – Technology
SMBC: 2025 Summer Intern Program – BCDAD Operations Transformation Group
Soka Business Review is created in collaboration between Bridges to Business and Soka Finance Society. Current text was written by Mark Pliushchanskii (mpliushchanskii@soka.edu) and edited by Richmond Acquah (racquah@soka.edu) and Hoa Tran (hyamamoto@soka.edu).
