Stocks were down for a 3rd week in a row on the back of turmoil in UK financial markets and signs that the Fed still has much more to tighten. In Fixed income, the 10-year U.S. Treasury note briefly breached 4% for the first time since 2008. The S&P 500 Index broke below its mid-June lows and fell back to November 2020 levels. The market’s biggest moves came Wednesday, following a surprise decision by the Bank of England to purchase long-dated UK government bonds. The end result was an easing of recent upward pressure on interest rates and the U.S. dollar and a rally for stocks. Markets reversed their gains on Thursday, however, with the selling seemingly caused by data showing continued resilience in the economy and inflationary pressures. Weekly jobless claims fell to 193,000, well below consensus expectations and their lowest level since late April. Meanwhile, the core PCE price index, widely recognized as the Fed’s preferred inflation gauge, rose at an annualized pace of 4.7% in the second quarter—well above expectations of around 4.4% as well as the Fed’s long-term 2.0% inflation target. In Europe, ields jumped at the start of the week amid worries about a severe deterioration in the public finances and then eased after the BoE said it would make temporary purchases of long-dated bonds “on whatever scale is necessary” in an effort to “restore orderly market conditions.” Shares in Europe fell slightly amid disappointing corporate earnings and fears of recession.