I hope that you and your loved ones are staying safe and are enjoying your summer! I can't believe it is August already...
U.S. equities finished July in an upbeat fashion. The S&P 500 broad-market benchmark surged over 9% for its best month since November 2020. 1
Although the consumer price index (CPI) reached a new 40-year annualized high of 9.1% and the Fed aggressively raised interest rates with a second 0.75% hike, equity markets reversed last month’s losses, looking past concerns about high inflation and recessionary indications.
Second quarter corporate profits are coming in much better than feared. Through the end of July, 279 S&P 500 firms have reported with 71% topping analysts’ estimates, beating projections by approximately 4.6%.
Since the pandemic low on March 23, 2020, the S&P 500 is up 91.41%, the Dow 30 is up 85.05% and the Nasdaq has gained 83.88%. 1
Looking ahead, investors are still watching for signs that the U.S. is in a recession and that inflation is slowing down.
Federal Reserve Chairman Powell signaled that future rate increases may be smaller and market-implied expectations for upcoming policy tightening slowed.
In an advance second- quarter GDP report, the U.S. economy contracted by 0.9%, following a 1.6% decline in the first quarter. While two successive quarterly GDP contractions meet the common definition of a recession, the second quarter decline was the first of three estimates, so the picture may change as more data becomes available.
Your well-being is of foremost importance. We will continue to watch the data, listen to what Fed officials are saying for clues and make accessible updates as soon as they are available.
Remember, we are here to help you and your family answer any questions that you may have. As always, feel free to contact me directly at 330-908-1087 or you can e-mail me as well.
Stay healthy, stay safe and stay positive!
1Morningstar Direct (all equity performance percentages are total return based, which include reinvested dividends)
Investors cannot invest directly in indexes. The performance of any index is not indicative of the performance of any investment and does not take into account the effects of inflation and the fees and expenses associated with investing.