Last week, U.S. equities experienced a surge, driven by cautiously dovish comments from US Federal Reserve Chair Jay Powell in Europe. This contrasted with the hawkish tone recorded in the June FOMC Minutes.

Notable highlights include:
• Nasdaq Composite: The index increased by 3.5%.
• S&P 500: It gained 1.9%.
• Russell 2000: This index fell by -1.3%.
• Sector Performance: Technology led with a bullish performance, up 2.9%. Communications, Consumer Discretionary, Financials, Staples, and Utilities also advanced.
• U.S. Oil: It rose over 2% due to news of Hurricane Beryl causing oil giants to evacuate platforms in the Gulf of Mexico.
• U.S. Treasury Yields: They were down, likely influenced by speculation that the Fed is shifting to a more dovish stance.
• Nonfarm Payrolls: 206,000 jobs were added in June, exceeding expectations but below the average monthly gain of the previous 12 months.
• Unemployment Rate: Remained steady at 4.1%, but long-term unemployed individuals increased to 1.5 million (22.2% of all unemployed people).
Global Market Highlights:
• China: The Caixin/S&P Global services purchasing managers’ index (PMI) eased to 51.2 from 54.0 in May, remaining in expansionary territory for the 18th straight month.
• Germany: Industrial orders fell unexpectedly in May, indicating manufacturing challenges in Europe’s largest economy.

Certainly! Let’s dive into the key events and reports for the week ahead:

1. French Parliamentary Elections (Sunday):
o Global markets will closely watch the outcomes of the French parliamentary elections. These results will be weighed against the recent Labour Party victory in the UK.
2. US Consumer Credit Reports (Monday):
o Insights into consumer borrowing will be revealed through US consumer credit reports.
3. Fed Chair Powell’s Testimony (Tuesday):
o Federal Reserve Chair Jerome Powell will testify before the Senate Banking Committee. Investors will be attentive to any hints of a possible dovish pivot in monetary policy.
4. Inflationary Data (Thursday and Friday):
o The realities of future rate cuts hinge on inflationary data.
o U.S. CPI (Thursday): The Consumer Price Index will provide insights into inflation trends.
o U.S. PPI (Friday): The Producer Price Index will further inform inflation expectations.
5. Pricing Data from Major Economies (Tuesday):
o China: Reports on Consumer Price Index (CPI) and Producer Price Index (PPI).
o Japan: Release of the Producer Price Index (PPI).
6. Second Quarter Earnings Season (Late in the Week):
o Thursday: Delta Air Lines (DAL) and PepsiCo (PEP) are scheduled to report.
o Friday (Premarket): Banking giants JPMorgan Chase (JPM), Wells Fargo (WFC), and Citigroup © will announce their earnings.
o Analysts anticipate robust year-over-year growth rates for S&P 500 stocks this quarter, with some expecting rates not seen since Q1 2022.

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