Unify Financial Advisors Weekly Market Update
Markets finished higher last week despite heightened volatility as investors weighed strong second-quarter corporate earnings, the Federal Reserve’s decision to leave interest rates unchanged, and a slate of economic data. Stocks rebounded after a sharp mid-week decline following the Fed announcement, while long-term Treasury yields moved higher amid lingering inflation concerns. Crude oil prices remained volatile, fluctuating with developments in the Middle East.
Economic data was mixed last week. The Federal Reserve maintained its target interest rate range of 3.50%–3.75%, citing solid economic growth and a resilient labor market while acknowledging that inflation remains above its 2% target. Second-quarter GDP grew at an annualized rate of 1.5%, below expectations, primarily due to temporary factors (reduced government spending, increased imports, and lower inventories). June inflation continued to ease modestly. Consumer spending and personal income increased at a slower pace, durable goods orders rebounded, and the U.S. trade deficit narrowed. Initial unemployment claims rose slightly but remained at historically low levels, reflecting continued labor market strength.
Weekly Outlook
Investor attention will shift to this week’s economic data, highlighted by Friday’s July Employment Situation report. Markets will also monitor manufacturing and services activity, the JOLTS job openings report, and international trade data for additional insight into the health of the economy and the labor market.
Please read the full Market Week report for additional details on last week’s market and economic activity.
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Regards,
David Bennett