Week of July 15: Market Snapshot
The Consumer Price Index fell 0.1% from May to June, beating the expectation for 0.1% increase over the month and marking its first monthly decline since May 2020. This resulted in annual inflation falling from 3.3% last month to 3.0%, which is a 3-year low.
On the back of this encouraging data, bond yields fell last week and equity markets experienced an uptick in volatility. This was evidenced by tech stocks starting the week strong then experiencing their worst one-day decline since mid-April on Thursday and recovering to end the week positive.
Following the inflation data, expectations for the Federal Reserve to being cutting rates at their September meeting greatly increased.