While economic data continues to exhibit mixed trends, the market's performance is being closely watched, given the ongoing impact of interest rates and earnings expectations. Stay informed about the evolving economic landscape.
Insights into the S&P 500's 4.77% Drop, Rising Interest Rates, and Economic Trends. Explore Impact of Gas Prices, Student Loan Payments, and More.
August Market Recap: S&P 500 Declines, Global Markets Hit Hard, and Mixed Economic Data. Energy Sector Gains, Weak Data from China and Germany. Powell's Inflation Goals. U.S. Job Numbers and Wage Growth. JOLTS Report Signals Softening Labor Markets. Q2 Earnings Performance and Future Estimates. Core PCE Index Indicates Rising Prices in July.
In July, the S&P 500 surged, achieving its best start in years. All sectors showed gains, with positive economic data and reduced recession concerns. The Fed raised rates, and CPI reached 3%. Job market data indicated wage growth. Earnings season has seen many companies beating expectations, but earnings are expected to decline by 7.3%.
In June, the S&P 500 surged 6.6%, reflecting broad market strength. The Fed signaled future rate hikes, and economic data remained resilient. Earnings for Q2 are projected to decline, but a rebound is expected in Q4. Job growth exceeded expectations, while wage growth fell short. Consumer spending drove a 2% rise in Q1 GDP.
While the consumer's strength has helped avert a recession, there are signs that it may be weakening, raising concerns among investors. Additionally, earnings for Q1 have declined for the second consecutive quarter, albeit at a lesser extent than initially projected. Analysts project further earnings declines in Q2 before a rebound in Q3 and Q4.