A look back
- Most major equity markets remain in the red for the month with just one week to go. The S&P 500 closed the week 0.6% lower while international markets fared better, as both developed and emerging markets posted modest gains.
- Yields continued to move higher, driven in part by rising oil prices, with the 10-year U.S. Treasury ending the week 0.14% higher at 4.68%. Crude oil in the U.S. rose from $82 to end the week near $89.
- In a quiet week for economic data, earnings season remained the focus as the S&P 500 earnings beat rate stands at 86% with 27% of companies having reported. Conflict in the Middle East and shifting U.S. trade policy also kept investors on edge.
A look ahead
- This week marks the busiest stretch of the S&P 500 earnings season, with four of the Magnificent 7 set to report. Attention will also turn to the 2Q gross domestic product (GDP) report, with consensus expecting modestly stronger growth versus 1Q.
- On Wednesday, investors will focus on the Federal Reserve (Fed) rate decision, with markets pricing in roughly a one-third probability of a rate hike. The decision will be followed a day later by the release of the Fed's preferred inflation gauge, core personal consumption expenditures (PCE).
- Economic releases: GDP, PCE, Personal Income & Spending, Conference Board Consumer Confidence, U of Michigan Consumer Sentiment.
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