The S&P 500 fell 1.3% on the week with the bulk of the drop following the Federal Open Market Committee (FOMC) interest rate decision. Domestic small caps outperformed large caps on the week, but foreign equities underperformed.
Second quarter earnings reports continued to come in this week with 30% of S&P 500 companies reporting. Things are looking better than expected. Earnings growth for the period has been less negative than expected.
The Consumer Price Index (CPI) number for June came in this week. The month-over-month price increase was higher than expected at 0.3%, excluding food and energy. The previous month’s CPI numbers have been pretty anemic.
There was a major milestone this week as the S&P 500 Index briefly crossed the 3000 mark. The positive returns come on the heels of investors expecting the Federal Reserve to cut rates.
The S&P 500 rallied 2.1% on this shortened week. Small caps advanced 2.9% while emerging market equities gained 1.7%. Bond yields continue to move lower with the 10-year Treasury hitting its lowest level since 2016.