Last Week: 0.85%
YTD: 18.57%
1 Year: 26.39%
Dow Jones Industrial Average
Last Week: 1.74%
YTD: 7.16%
1 Year: 18.14%
Last Week: -0.22%
YTD: 22.63%
1 Year: 31.66%
Last Week: 5.37%
YTD: 6.76%
1 Year: 12.83%
YTD: 24.64%
1 Year: 35.10%
YTD: 9.10%
1 Year: 14.79%
Inflation Falls
The consumer price index (CPI) decreased by 0.1% In June compared to the previous month. This marked the first monthly decline in over four years, putting the annual rate at 3%. This is the lowest in more than three years. Excluding food and energy, core CPI increased 0.1% monthly and 3.3% annually, the smallest annual rise since April 2021. This tame inflation report, driven by a 3.8% drop in gasoline prices and modest increases in food and shelter costs, boosts the likelihood of the Federal Reserve cutting interest rates, potentially starting in September. Following the report, stock market futures rose, and Treasury yields fell, reflecting increased market optimism about future rate cuts.
Wholesale Prices
In June, the producer price index (PPI) rose 0.2%, higher than the expected 0.1% increase, indicating a 2.6% rise over the past year. This increase in wholesale prices, driven by a rise in service prices despite declining goods prices, contrasts with recent data showing declining inflation. The Federal Reserve’s next policy meeting in late July is expected to maintain current interest rates, with traders anticipating a potential rate cut in September.
China's Economic Growth Slows
China’s economy, as measured by gross domestic product (GDP), grew by 4.7% in the second quarter, missing the expected 5.1% growth. China’s June retail sales rose 2%, below the forecasted 3.3%. Industrial production in June exceeded expectations with a 5.3% increase, and high-tech manufacturing saw an 8.8% rise. Urban fixed asset investment grew by 3.9% in the first half of the year, and the urban unemployment rate remained at 5%. Despite positive signs in some areas, weak domestic demand and lower-than-expected retail sales highlight challenges for China’s economic recovery and suggest the need for increased fiscal and monetary support.
