Weekly Market Recap Week Ended June 30

Inflation moderation

The U.S. Federal Reserve’s preferred gauge for tracking inflation showed that consumer prices rose in May at the slowest monthly pace in two years. The Personal Consumption Expenditures Price Index rose at a 3.8% annual rate, down from a revised 4.3% figure in April. Excluding volatile food and energy prices, core inflation rose 4.6% in May versus 4.7% in April.

Top-heavy tech market

The first half of 2023 produced lopsided results across U.S. equity sectors. The information technology sector accounted for nearly 62% of the S&P 500’s year-to-date total net return, according to S&P Dow Jones Indices. Across the other 10 sectors, consumer discretionary generated about 19% of the broad market’s return and communication services added 16%; other sectors were either modestly positive or negative.

Yields climb

Yields of U.S. government bonds rose, ending what had been a mostly quiet stretch for fixed income in June. The yield of the 10-year U.S. Treasury bond closed at 3.81% on Friday, up from 3.74% at the end of the previous week. As recently as early April, the yield had been as low as 3.29%.

Jobs update ahead

A monthly U.S. labor market update due out on Friday will show whether unexpectedly strong recent job growth extended into June. In May, the economy generated 339,000 new jobs, exceeding most economists’ expectations by a wide margin and up from 294,000 added in April. May’s unemployment rate rose to 3.7%.

Source: https://wmr.jhinvestments.com/