The report came in below expectations for the first time since April 2022, at 209,000 net new jobs created, representing the slowest month for job creation since December 2020. That said, we are noticing signs of moderation, including the June payroll report. economy has remained remarkably resilient, largely due to the strength of the labor market. Despite this hawkish outlook, investors largely believe the latest rate increase was the last one of this cycle.ĭespite ongoing monetary policy tightening, the U.S.

While the Fed upheld the possibility for additional rate increases, officials reiterated the path forward will remain “data-dependent” and that they will factor in the cumulative effect of restrictive monetary policy. Market breadth for the S&P 500 ® has now rebounded to the highest level since January 2023 (Figure 1).Īs widely anticipated, the Federal Reserve (Fed) raised interest rates 25 basis points (bps) at the July Federal Open Market Committee meeting, lifting the target rate range to 5.25% - 5.50%. economy was further evidenced by the broadening of stock market leadership to include small- and mid-capitalization stocks, as well as traditionally cyclical value sectors. In July, domestic equities continued their move higher as market optimism prevailed following reports of cooling inflation and surprisingly positive economic data. United States Market breadth improves as monetary and economic clouds lift

Citi Global Macro Surprise Index