This Weekly Financial Markets Update reviews the top market headlines: Key Inflation Measure Decelerates, Housing Prices Hit Another New High, Consumer Sentiment Remains Subdued
  • The core Personal Consumer Expenditures price index rose 2.6% versus the prior year in May
  • Home prices across 20 key U.S. metropolitan markets increased at an annual pace of 7.2% in April
  • The University of Michigan Consumer Sentiment Index fell to 68.2 in June

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Top Three Market Headlines

Key Inflation Measure Decelerates: The latest reading of the Personal Consumption Expenditures (PCE) price index, known to be the Federal Reserve's preferred inflation gauge, showed that prices for consumer goods and services were flat in May versus the prior month. The report, released last week by The Bureau of Economic Analysis, confirmed the May Consumer Price Index reading issued a few weeks prior by the Department of Labor. On a "core" basis (excluding food and energy), the PCE price index rose 0.1% on the month, down from 0.3% in April. Compared to the prior year, both the headline and core PCE measures were 2.6% higher, down from rates of 2.7% and 2.8%, respectively, in April.

Housing Prices Hit Another New High: The S&P CoreLogic Case-Shiller 20-City Composite, which measures the changes in value of existing single-family houses across 20 key U.S. metropolitan areas, rose in April by 0.4% versus the prior month, pushing the index to another new high. Compared to the prior year, prices rose at a 7.2% clip, the 10th consecutive month of annual price gains. Prices were higher compared to the prior year across all 20 markets, ranging from +10.3% in San Diego to just +1.7% in Portland.

Consumer Sentiment Remains Subdued: The latest Index of Consumer Sentiment published by the University of Michigan registered 68.2, down marginally from 69.1 in May. The June reading was the lowest since November 2023 and was well off the 10-year average of 83.9. Survey respondents voiced concerns about high prices and weakening incomes. Related, the Conference Board's Consumer Confidence Index also ticked down from 101.3 in May to 100.4 in June, which compares to a 10-year average of 109.6.

Please note: There will be no Weekly Financial Markets Update published next week. We would like to wish everyone a happy Independence Day!

As of July 01, 2024 Week Quarter-To-Date Year-To-Date One-Year
MSCI All Country World 0.13% 2.87% 11.30% 20.91%
S&P 500 -0.06% 4.28% 15.29% 26.67%
Russell 2000 1.33% -3.28% 1.73% 11.90%
MSCI EAFE 0.36% -0.42% 5.34% 12.53%
MSCI Emerging Markets 0.06% 5.00% 7.49% 12.40%
FTSE NAREIT Equity 1.36% 0.06% -0.13% 9.75%
Bloomberg Commodity -0.62% 2.89% 5.14% 6.23%
Barclays U.S. Aggregate -0.65% 0.07% -0.71% 2.13%

S&P Global 6/25/2024, WSJ 6/21/2024, University of Michigan 6/28/2024, The Conference Board 6/25/2024, BEA 6/28/2024. Data from Morningstar Direct. Returns for periods greater than one year are annualized. Investment advisory, named and independent fiduciary services are offered through Gallagher Fiduciary Advisors, LLC, an SEC Registered Investment Adviser. Gallagher Fiduciary Advisors, LLC does not express an investment opinion regarding any specific commodity, sector or individual security. Unless otherwise expressly noted, the contents of this communication do not constitute securities or investment advice, nor should this communication be construed as an opinion regarding the appropriateness of any investment. Gallagher Fiduciary Advisors, LLC is a single-member, limited-liability company, with Gallagher Benefit Services, Inc. as its single member. Neither Arthur J. Gallagher & Co., Gallagher Fiduciary Advisors, LLC nor their affiliates provide accounting, legal or tax advice. The information provided cannot take into account all the various factors that may affect your particular situation, therefore you should consult your Gallagher Fiduciary Advisors consultant before acting upon any information or recommendation contained herein to discuss the suitability of the information/recommendation for your specific situation.