From Our Point of View

In July, the S&P 500 rose 1.2%, with a significant rotation from mega-cap tech stocks to value-oriented sectors like Real Estate, Utilities, and Financials. The Russell 2000 surged by 10.2%. Mixed economic data and Fed signals about potential rate cuts in September added to market dynamics. While corporate earnings are expected to grow, risks such as inflation, stretched valuations, and consumer debt are being closely monitored. The recent rally allowed for strategic adjustments, including adding to fixed income in anticipation of future rate cuts.

This week's market recap covers significant declines in U.S. and international equities, insights into the Federal Reserve's latest policy stance, and a preview of upcoming economic data releases. Key factors include disappointing tech earnings, dovish Fed signals, and a slowing labor market.

U.S. equities faced volatility amid tech sell-offs and earnings reports. The Dow Jones gained 0.9% while the S&P 500 and Nasdaq declined. Economic data, including GDP growth and PCE inflation, provided market boosts. Learn more about the latest market movements, Federal Reserve insights, and key economic data for the week ahead.

This week saw U.S. stocks navigate a bumpy ride with significant market rotation, political events, and trade tensions. Despite reaching record highs, the S&P 500 and Nasdaq fell, while the Dow posted modest gains. International markets were similarly affected by cyber outages and economic data, with mixed performances across regions.

U.S. equities continued their ascent with the S&P 500 reaching a new high. AI-driven gains and cooling inflation data bolstered market sentiment. Treasury yields fell amid dovish remarks from Fed Chair Jerome Powell.

In June, the markets experienced mixed results as inflation and economic data slowed. Mega-cap tech led the S&P 500 up 3.5%, while other indices posted losses. Key sectors like Tech and Consumer Discretionary performed well, while Utilities and Materials declined. Cooling labor market and inflation indicators gave hope for a potential Fed rate cut. Analysts have raised year-end stock market projections, but concerns remain about consumer savings and potential economic slowdown. Corporate earnings are expected to grow, but high valuations and geopolitical tensions pose risks. Our strategy remains optimistic, with a focus on monitoring economic dynamics and seizing opportunities.