Key Highlights
Market Snapshot
The primary half of July continued the 2024 good points and new closing highs (7 in July and 38 YTD); the final closing excessive (of 5,677.20; intraday excessive of 5,669,67) was on July 16, when the S&P 500 was up 3.79% month-to-date and up 18.90% YTD. Nevertheless, beginning on July 17, 2024, the notion and economics modified, with reallocation to small caps from giant caps, particularly in Data Know-how (together with the Magnificent 7). The index then declined 4.72%, placing it into the purple month-to-date (-1.12%), as some shopping for and bottom-fishing got here in to carry the market. The S&P 500 posted a powerful 1.58% acquire on the final day of the month, helped by expectations of the U.S. Fed lowering rates of interest at its subsequent assembly, ensuing within the index posting a acquire of 1.13% for July (1.22% with dividends), because it averted a second month-to-month decline for 2024 (April was -4.16% and -4.08% with dividends); June was up 3.47% (3.59%) and Could added 4.80% (4.96%). For the three-month interval, the S&P 500 posted a acquire of 9.66% (10.05%), with the YTD return up 15.78% (16.70%), which annualizes to a 28.26% (29.99%) charge; breadth improved to 364 points up and 139 down (June YTD was 301 up and 200 down). July posted good points for 14 of its 22 buying and selling days (12 of 19 final month; 82 of 146 YTD). Of the 11 sectors, 9 had been up (5 up final month), as buying and selling decreased 10% (adjusted for days) over June and was down 4% over July 2023.
The S&P 500’s market worth elevated USD 0.536 trillion for the month (up USD 1.546 trillion final month) to USD 46.379 trillion and was up USD 6.340 trillion YTD; it was up USD 7.906 trillion for 2023 and down USD 8.224 trillion in 2022.
The Dow Jones Industrial Common set three new closing highs in July (22 YTD; 41,198.08 closing excessive and 41,221.98 intraday excessive), because it closed above 40,000 and 41,000 for the primary time. The index’s decline from its highs was restricted, helped by being a price-weighted index with restricted weight within the Magnificent 7. It closed at 40,842.79, up 4.41% (4.51% with dividends) from final month’s shut of 39,118.86, when it was up 1.12% (1.23%) from the prior month’s shut of 38,686.32 (2.30%, 2.58%). For the three-month interval, The Dow® was up 8.00% (8.53%), because the YTD interval was up 8.37% (9.52%). The one-year return was 14.86% (17.22%), 2023 was up 13.70% (16.18%) and 2022 posted an 8.78% decline (-6.86%).
Donald Trump turned the official Republican candidate for president on the Republican conference (July 15-18). Polls on the time had proven Donald Trump’s lead was rising, and the Road had began to take positions primarily based on a second Trump administration. On July 13, 2024, Trump survived an assassination try with minor accidents. At first of July, President Joe Biden continued to deal with his poor presidential debate efficiency on June 27 (the second debate is scheduled for Sept. 10), forward of the Democratic conference on Aug. 19-22. He was recognized with COVID-19 and was dealing with requires him to go away the presidential race, as he recovered and returned to work. On July 21, 2024, President Joe Biden mentioned he wouldn’t run for re-election, selecting as a substitute to endorse his vp, Kamala Harris, to be the Democratic candidate.
The Fed minutes from its June 11-12, 2024, assembly confirmed the members noticed that upward value strain was diminishing, however the group favored a wait-and-see method earlier than taking any motion. Fed Chair Jerome Powell testified earlier than Congress (a semiannual requirement) and indicated that rate of interest cuts had been coming, however gave no indication of the timeline, as he remarked that there are different dangers to the financial system (and duties of the Fed), referring to employment. The Fed Beige Guide confirmed slowing progress and a loosening labor market, as inflation was declining and the Road noticed it as supporting proof for a September rate of interest reduce by the Fed.
Obtain Full Article
