This Weekly Financial Markets Update reviews the top market headlines: Inflation Moderates Further in June, June Jobs Report Depicts Softening Labor Market, Jerome Powell Testifies Before Congress
  • The Consumer Price Index rose 3.0% on an annual basis in June
  • The U.S Labor Department reported that the U.S added 206,000 jobs in June
  • The Federal Reserve's current inflation target is 2%

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Top Three Market Headlines

Inflation Moderates Further in June: The U.S. Department of Labor reported last week that the Consumer Price Index (CPI) declined 0.1% in June from the prior month, after being unchanged in May. On a year-over-year basis, the CPI rose at a 3.0% pace in June, down from the prior month's reading of 3.3%. A driving factor behind the CPI's June decrease was falling prices for energy products, particularly gasoline. The "core" CPI, which excludes volatile food and energy items, rose 0.1% on the month and was up 3.3% on an annual basis, the latter of which was down from 3.4% in May and was the slowest rate since April 2021.

June Jobs Report Depicts Softening Labor Market: The U.S. Department of Labor reported the week before last that the U.S. economy added 206,000 new jobs in June. Concurrently, the previously estimated gains for April and May were revised downwards by a total of 110,000. This left the three-month average through June at 177,000, the slowest pace since January 2021. Industries seeing the most job additions in June included government and healthcare, which together accounted for nearly 75% of the total gains. Meanwhile, the unemployment rate rose for the third straight month, ticking up from 4.0% in May to 4.1%, its highest level since November 2021.

Jerome Powell Testifies Before Congress: In remarks to Congress last week, Federal Reserve Chairman Jerome Powell noted that inflation remains above the Fed's 2% target but acknowledged that the latest readings have shown some modest progress. Mr. Powell noted that further favorable data would strengthen the Fed's confidence that inflation is moving sustainably towards the target, which could open the door to interest rate cuts. Given recent data suggesting a cooling labor market, the Chairman remarked that inflation is not the only risk facing the economy, and that both factors will influence future monetary policy decisions.

As of July 15, 2024 Week Quarter-To-Date Year-To-Date One-Year
MSCI All Country World 1.37% 3.37% 15.05% 22.36%
S&P 500 0.89% 2.88% 18.61% 27.46%
Russell 2000 6.01% 4.95% 6.76% 12.80%
MSCI EAFE 2.29% 4.50% 10.08% 15.34%
MSCI Emerging Markets 1.82% 3.78% 11.55% 14.59%
FTSE NAREIT Equity 3.82% 3.70% 3.57% 9.04%
Bloomberg Commodity -1.61% -0.03% 5.11% 2.85%
Barclays U.S. Aggregate 0.82% 1.54% 0.82% 4.19%

US Dept. of Labor 7/11/2024, US Bureau of Labor Statistics 7/5/2024, Federal Reserve Board 7/9/2024. 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.