Insights

Highlights from the week of July 5 – July 11, 2024.

Recent U.S. economic data indicates a continued slowdown in price increases, prompting many investors to consider a September Federal Reserve rate cut a near certainty. The equity market implications may be different than you expect.

Lower-than-expected inflation numbers drove a rotation from large growth toward small value stocks and a sharp drop in short duration bond yields.

Lower-than-expected inflation numbers drove a rotation from large growth toward small value stocks and a sharp drop in short duration bond yields.

The UK and France both held major elections over the past few months. While the outcome in one was anticipated, the other was anyone’s guess. And the resulting market reactions reflected the dichotomous outcomes.

Last week’s spate of U.S. economic data and revisions suggest one thing: the job market is slowing. This has significant potential implications for both the September FOMC meeting and risk asset weightings.

Equities rose across the globe and U.S. treasury yields widened in the short U.S. trading week.  

Equities rose across the globe and U.S. treasury yields widened in the short U.S. trading week.

Political instability in France has sent the CAC 40 index down almost 10% since it peaked in May. The markets currently seem relieved that France’s far-right RN party may not gain an absolute majority in the French Parliament—but that could still mean gridlock and a debt crisis.

As the Fed’s preferred inflation measure came in as expected, U.S. equities mostly rose while corporate bonds fell.