Market Commentary
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The CPC Team
August 19, 2024
July 2024 Economic & Market Highlights
- July proved to be a volatile month as markets digested a number of notable economic and political developments.
- Headline inflation decelerated, with the Consumer Price Index (CPI) falling by 0.1% month-over-month in June and rising only 3.0% year-over-year, down from 3.3% in May. This contributed to increased investor confidence and optimism about potential Federal Reserve rate cuts later in the year.
- There was a significant rotation from mega-cap tech stocks to small-cap stocks, as evidenced by the Russell 2000's gain of 10.16% versus the S&P S00's more muted 1.22% gain.
- The Aggregate Bond Index rose as Treasury yields fell, driven by expectations of potential rate cuts by the Federal Reserve. This performance was supported by steady economic growth and a stable inflation outlook.
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