Main US equities indices ended higher over a week notable for the Dow Jones Industrial Average notching its 13th consecutive daily gain on Wednesday, which marked its longest winning streak since 1987. Trading activity was relatively subdued due to the summer vacation season. It was nevertheless a busy week in terms of news flow. The Fed announced a 0.25% increase in the federal funds target rate, as expected. The tone of the Fed’s statement was received as relatively benign, however, and expectations grew that the Fed was done raising rates, at least for the year.

Central banks are diligently proceeding with their anticipated monetary policy tightening, with one exception: the Bank of Japan, which appears inclined to alter its approach to yield curve control. Despite the summer season, their commitment remains unwavering!

The VIX shows a seasonal pattern, the war continues to drive the price of wheat upwards and fund managers are now underweight commodities. Each week, the Syz investment team takes you through the last seven days in seven charts.

The Dow Jones is up 10 days in a row U.S. equity indexes advanced on hopes that the tight labor market and moderating inflation would help the economy avoid a hard landing. The Dow Jones is up 10 days in a row, which is the longest winning streak since February 2017. The Nasdaq, however, suffered a modest pullback on the week on the back of Tesla and Netflix earnings. Value stocks outperformed their growth counterparts.

This week witnessed a stable fixed income market, marked by lower rate volatility and flat performance, all leading up to a significant week ahead. The Federal Reserve, Bank of Japan, and European Central Bank are set to deliver their latest decisions on monetary policies.

US inflation might be on holiday, but the Fed is still expected to raise rates in July and the dollar's weakness continues to have an impact on the markets. Each week, the Syz investment team takes you through the last seven days in seven charts.

Stocks, Bonds & Gold soar as inflation cools down. US stocks recorded strong weekly gains as investors welcomed data showing a continued cooldown in inflation. The S&P 500 Index ended the week 6.5% below the all-time intraday high it established in early 2022. The Nasdaq Composite recorded an even stronger gain but remained 12.9% below its record peak. Both US headline and core inflation rose 0.2% in June, a tick below expectations.

US Treasuries experienced their largest weekly inflows in 16 weeks, totaling $16 billion, as the release of CPI data prompted short sellers to cover their positions. The price action was significant, resulting in a 1.5% gain for US Treasuries bonds, making it one of the best weeks in 2023.

Yield gap between S&P 500 dividends and 2-year Treasury bonds illustrates the high valuation of US equities. Meanwhile, the 10-year yield breaks the 4% barrier and Switzerland brings inflation below 2%. Each week, the Syz investment team takes you through the last seven days in seven charts.

Strong US labor market keeps the Fed on high alert After a strong first half in 2023, equity markets retreated as we entered the first week of the third quarter. The S&P 500 was down -1.2% last week, while small-cap stocks underperformed large-cap equities. Growth stocks held up modestly better than value shares. The key driver for this market disruption was stronger-than-expected labor market and services data, as well as Wednesday’s release of (hawkish) minutes from the Federal Reserve’s last policy meeting.