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.

This week witnessed the clearance of major resistances in the bond market, as the 2-year US Treasury yield surpassed 5%, while the 10-year and 30-year yields rose above 4%.

Apple's market cap exceeded $3 trillion, the Nasdaq and Nikkei 225 indices were the best stock market performers in the 1st half of the year and the US economy continues to surprise on the upside. Each week, the Syz investment team takes you through the last seven days in seven charts.

CHART OF THE WEEK: WILL “SOFT MACRO DATA” CLOSE THE GAP?

This week, central bank officials delivered a strong and unified hawkish message, signaling the likelihood of higher interest rates for an extended period.

The Nasdaq is on track for its best first half since 1999, the S&P 500 is as expensive as in 2000 and India is poised to overtake China as the world's economic growth engine. Each week, the Syz investment team takes you through the last seven days in seven charts.

The major US equity benchmarks closed lower in a holiday-shortened trading week. The Nasdaq suffered its first weekly decline in two months, while the S&P 500 Index recorded its first drop in six weeks. Growth stocks outperformed value shares, while large-caps fared better than small-caps. Signs that further Federal Reserve rate hikes lay ahead seemed to weigh on sentiment for much of the week.