Weekly Global Perspectives

Defensive posturing in equity markets and rising bond yields capped off a week where the Fed left rates unchanged but hinted at a higher-for-longer regime and the potential for more hikes.

Despite hotter than anticipated consumer and producer price index readings the market does not expect a rate hike in September.

Geopolitical scrutiny on tech names, renewed backup in rates, dollar strength and an oil spike created overhangs on the U.S. markets.

Potential positive signs for inflation emerged this week as the labor market appears to be cooling and the Personal Consumption Expenditures index came in flat for July.

Global stocks were mixed for the week, as Fed Chair Jay Powell indicated further rate hikes may be needed amid persistent above-trend growth but will proceed carefully on whether to hike again.

Stocks and bonds headed lower globally for the week on news of weak China growth and the governments inadequate policy response. News for the U.S. economy was better, but stoked fears that the Fed might need to keep rates higher for longer.

The major U.S. stock indexes were mixed: the Dow Jones Industrial Average advanced, the S&P 500 Index and the Nasdaq Composite declined. Asian indexes also were mixed; European markets declined.

The major U.S. stock indexes declined after Fitch’s downgrade of the United States’ credit rating undercut confidence, though boosts came from improving 2Q23

The major U.S. stock indexes finished higher on Friday to cap off solid weekly gains.

The major U.S. stock indexes posted gains for the week. The market mood seemed to brighten with 2Q23 earnings so far coming in better than expected.