A look back
- The S&P 500 declined -1.6% and was weighed down by the technology sector, which is now -10% below its peak. The technology pullback acutely impacted emerging markets, which fell -4.1%, while international developed markets were down -0.8%.
- Yields traded modestly lower with the 2-year U.S. Treasury yield dropping to 4.17% and the 10-year closing at 4.54%. On the other hand, crude oil prices rose 14.5% to end the week at $81.78.
- Economic data was the highlight of the week as the Consumer and Producer Price Indexes (CPI and PPI) showed inflation was cooler than expected in June. Meanwhile, earnings season kicked off, led by banks reporting largely solid results.
A look ahead
- Earnings will take center stage with 87 companies in the S&P 500 set to report, including two stocks in the Magnificent Seven. Earnings growth for the index is expected to be 23% year-over-year, which would mark the second straight quarter above 20%.
- Aside from earnings, the week will be relatively light on the economic data front with New Home Sales the main focus. Elsewhere, geopolitics remain front and center, headlined by any developments in the Middle East conflict and the expiration of the U.S. 10% global import tariff on Friday.
- Economic releases: Initial Jobless Claims, S&P PMI Manufacturing and Services, New Home Sales.
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