The Deep Summer Economy: Feels So Good or On a Crazy Train?

In this week's episode, we review the unemployment and home sales figures that were released this week, as well as the ongoing trade tensions and tariff negotiations between the United States and its trading partners. We also touch on the Federal Reserve’s policy decisions and President Trump’s visit to tour the renovations to the Federal Reserve headquarters in Washington, D.C. Lastly, we look into the performance of the stock market, including the S&P 500 reaching new all-time highs, a new round of corporate earnings, and the resurgence of "meme stocks."

Speakers:
Brian Pietrangelo, Managing Director of Investment Strategy

George Mateyo, Chief Investment Officer
Stephen Hoedt, Head of Equities

01:47 – The initial unemployment claims report showed a decline, indicating a robust employment market. However, existing home sales fell due to higher mortgage rates.

02:35 – The European Central Bank paused its rate-cutting cycle, which could be an indirect factor in the upcoming Federal Reserve policy decision. President Trump also visited the Federal Reserve and spoke with Chair Jerome Powell.

03:52 – Regarding tariffs, the U.S. reached a tentative agreement with Japan to lower tariff rates, which was seen as positive news. However, the overall tariff rate remains elevated compared to the beginning of the year.

07:58 – A discussion on the resilience of the economy, with corporate earnings exceeding expectations and the labor market remaining healthy. They also noted some potential headwinds, such as policy uncertainty and the potential for market volatility as we head into autumn.

 

Additional Resources

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