Market Update 7/11/22
July 11, 2022
he major U.S. stock market indexes rose last week, coming off mid-June lows. The NASDAQ Composite was the strongest performer, up 4.56%. The Dow Jones Industrial Average was the weakest performer, rising just 0.77%. The S&P rose 1.94% on weaker-than-anticipated economic indicators, which reduced expectations for rate increases going forward. The 10-year Treasury bond yield jumped 10 basis points to 3.08%, coming off recent lows. Spot gold closed the week at $1,742.48, down 3.81%.
Five out of 11 sectors were up last week. Communication Services was the best-performing sector, rising 4.92%. Utilities was the worst-performing sector for the week, down 2.87%. On the whole, risk-on sectors rose and risk-off sectors fell.
Stocks
The rebound in stocks last week was likely driven by improving conditions around inflation and signs that the economy may be slowing, a goal of the Federal Reserve in its fight against inflation.
The consumer price index (CPI) numbers will be released this week, but there are signs elsewhere that inflation may be slowing. For example, the U.S. Core Personal Consumption Expenditure (core PCE) Price Index slowed to 4.7% in May from April’s 4.9% reading. Additionally, gasoline prices have fallen for 26 straight days (as of July 10)—the longest stretch since the beginning of the pandemic—and gasoline futures are off about 20% from their recent high...
