Market Notebook

PRICE ACTION:
Equity prices, as measured by the ticker SPY, and bond prices, as measured by the ticker BND, closed higher over the last week.

SPY    +0.34%
BND    +0.97%

TECHNICAL ANALYSIS:
SPY price appears to be trending upwards.

BND price appears to be trending upwards.

SENTIMENT:
Market participants pushed bond prices higher as weak jobs data increased expectations for a September rate cut by the Federal Reserve. The size of the cut is likely to be determined by inflation data. Subdued inflation data could lead to a 50 basis point cut (as opposed to the expected 25 basis point cut). Equity market participants will view any rate cut as supportive of equity prices.

ECONOMY AND FUNDAMENTALS:
Economic fundamentals remain positive, with data suggesting the U.S. economy remains resilient in the face of geopolitical and trade-related turbulence. The Federal Reserve appears to be acting appropriately with two goals in mind: to keep inflation under control and support real economic activity.

All the best during the week ahead!

Disclaimer: Nothing in this discussion should be considered investment advice. The content of this discussion is strictly my personal opinion and subject to change at a moment’s notice. Investment advice can only be provided to you by your investment professional and not by a general market discussion such as this one. If you wish to speak with an investment advisor, contact us. We can probably help.