By: Gerry sparrow
Upbeat Economic News
Three critical economic data points gave investors what they were looking for: wholesale inflation, consumer prices, and retail sales.
Both the Producer Price Index and the Consumer Price Index rose less than expected in July, reinforcing a picture of cooling inflation. The July retail sales report on Thursday was stronger than expected, which added more fuel to the week-long rally.3,4,5
Market action slowed down on the week’s final trading day, with positive consumer sentiment gains countered only by a drop in housing starts.
It was the S&P 500’s best weekly gain of the year so far and the best since November of 2023. The gains helped erase losses from earlier in the month, when “carry trades” news from Japan unsettled investors.6,7
Double Assist
Last week’s market rally saw assists from two places: economic data and constructive Fed comments.
On Thursday, Atlanta Fed President Raphael Bostic said he had “a lot more confidence that inflation’s sustainably on its way to 2%,” citing steady drops in CPI. And St. Louis Fed President Alberto Musalem said, “the time may be nearing when an adjustment (to the Fed Funds Rate) may be appropriate.8
PHOTO CREDIT: https://www.shutterstock.com/g/grinvalds
Via SHUTTERSTOCK
Footnotes:
3. The Wall Street Journal, August 13, 2024
4. The Wall Street Journal, August 14, 2024
5. The Wall Street Journal, August 15, 2024
6. The Wall Street Journal, August 16, 2024
7. CNBC.com, August 16, 2024
8. The Wall Street Journal, August 15, 2024
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