U.S. equities extended their momentum this week as both the S&P 500 and Nasdaq Composite notched fresh record highs mid-week.
The advance was underpinned by strong June retail-sales figures and a drop in first-time jobless claims to 221,000. Rising consumer prices, however, exceeded forecasts, causing Treasury yields and the U.S. dollar to firm while tempering hopes for imminent Federal Reserve rate cuts. Sentiment wavered late in the week after U.S. President Trump proposed a 35% tariff on Canadian imports effective August 1 and questioned the Federal Reserve’s independence.
Looking ahead, market participants face a data-heavy schedule next week. Flash purchasing-managers’ indexes for both manufacturing and services will provide an early read on third-quarter activity, while investors parse the latest Federal Reserve communications amid ongoing speculation about a policy rate cut at the upcoming FOMC meeting. Earnings season also intensifies, with reports due from Alphabet, Tesla and Verizon, adding another layer of potential market-moving information.
Given this economic backdrop, let us see how this impacts the performance of various investment strategies.
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