Mid-Week Market Minute 6.28.23

Mid-Week Market Minute 6.28.23

Stocks around the globe were marginally higher this week after Tuesday’s rally pushed returns into positive territory for the final trading week of the second quarter. Broadly speaking, stocks are on pace to post impressive gains for the month of June, with the S&P 500 higher by nearly 5% as of June 28. On the international front, the MSCI EAFE was higher by about 3.5%, while emerging market stocks were better by about 4%.

Economic data reported Tuesday showed consumer confidence and new home sales both above consensus expectations, as investors monitor the ongoing strength of the economy. In addition, the Federal Reserve Bank of Atlanta’s GDPNow estimate for second quarter GDP growth was revised higher to 1.8%. If realized, this would maintain the growth trajectory for the economy in 2023, following annualized GDP growth of 1.3% in the first quarter. 

Federal Reserve Chair Jerome Powell is set to speak on Wednesday before a policy panel at the European Central Bank. Markets will be looking for more clues from Powell about the future of U.S. economic policy. Recently, the Fed chair said he expects additional interest-rate increases on the way to battle inflation, though he thinks the central bank can do so at “a more moderate pace.” On the inflation front, key data will be reported on Friday, with the Fed’s preferred measure on inflation, the headline PCE price index, expected to fall from 4.4% to 3.8%, while the core PCE price index is expected to remain unchanged at 4.7%  

Source: GSAM, CNBC, JPMorgan

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