Equity markets remained positive, with the rally in U.S. equities continuing since hitting a low in mid-June. A substantial proportion of the S&P 500 continues to beat analysts’ earnings expectations. Investors are also expecting the Federal Reserve to possibly soften monetary policy after their latest 75-bp hike and U.S. GDP contracted in the second quarter.
Yields remained volatile after the Fed raised rates by 75-bp and the latest U.S. GDP data was released. Yields moved lower signaling an increased probability of recession.
Oil prices rallied as supplies continue to tighten despite increased energy demand as we move further into the summer months. Copper prices continue to sustain increases because of similar supply chain issues. Demand for gold increased with the market expecting smaller rate hikes for the foreseeable future.