2024-07-07 09:00:00 ET
Summary
- U.S. equity markets climbed to fresh record-highs during the Independence Day week, while interest rates fell sharply after a critical slate of employment data showed evidence of cooling labor markets.
- Traders monitored the continued fallout from the prior week's lopsided debate, reflecting an increased probability that President Biden will step aside ahead of the November elections.
- Narrow market breadth - notably, the outperformance of large-cap equities over small-caps - remained a theme this week, as it has since the start of the Fed's rate hiking cycle.
- Cracks in the facade? The Payrolls report showed 206k jobs added in June - above estimates - but consistent with recent trends, the report was far weaker under the surface.
- Net revisions subtracted 111k from the prior two months, while job growth in June was skewed heavily toward government employment. Continuing Jobless Claims, meanwhile, rose for a ninth straight week to 1.86 million - the highest since November 2021.
Real Estate Weekly Outlook
U.S. equity markets climbed to fresh record-highs during the Independence Day week, while benchmark interest rates fell sharply after a critical slate of employment data showed further evidence of softening labor market conditions, lifting the prospects for multiple Fed rate cuts in 2024. Meanwhile, traders monitored the continued fallout from the prior week's lopsided debate, reflecting an increased probability that President Biden will step aside ahead of the November elections despite a series of commitments to stay in the race....
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A Fragile Facade