US Market

The CPI print will reflect in real rates adjusting. Any changes will ripple down to the value and growth sides of the stock market.

The tech-heavy index declined after the strong employment report that boosted expectations for another big move from the Fed, while markets now gear up for Wednesday’s inflation figures

The first week of August remained a busy one, as we had a large number of high profile corporations releasing their financial results, such as chip-maker AMD, British energy giant BP, ride-hailing firm Uber and others

The US stock markets are at a better place today as investors try to put recent geopolitical tensions in the rearview mirror and turn their focus to today’s encouraging economic data

The tech-heavy NAS100 is feeling the pressure as China/US tensions flare over House Speaker Pelosi's trip to Taiwan.

The 10-yr real rate is just 7bps from 0 (black line chart), and the 5-yr is 7bps below 0 (red line chart). Given that interest rates are included in the denominator of the time value of money, this deterioration is supportive of present values. I.e. it is acting against the whims and desires of the Fed's stated intention of controlling inflation.

The last week of July was dominated by the Big Tech earnings, but the auto industry, plane makers and retailers were also in the spotlight

The US economy posted second back-to-back quarterly negative GDP, according to the preliminary data that were just released, against expectations for marginal growth

The US central bank delivered another 75 basis point rate increase on Wednesday, but offered no guidance, while reiterating its commitment to bring inflation down and brushing off recession fears

The Fed’s monetary tightening has weighed on the sector and on Wednesday we expect its latest decision, while the week is also dominated by the quarterly results of tech heavyweights such Apple, Amazon and more

As the real yield has diminished, the NAS100 has found support.