This Weekly Financial Markets Update reviews the top market headlines: U.S. GDP Growth Rises in Q2, Noted Inflation Measure Holds Steady in June, Home Sales Fall Again in June
  • U.S. GDP grew at a 2.8% seasonally adjusted annual rate in Q2 2024
  • The core Personal Consumer Expenditures price index rose at a 2.6% annual rate in June
  • Existing home sales in the U.S. fell 5.4% in June

Top Three Market Headlines

U.S. GDP Growth Rises in Q2: The U.S. Bureau of Economic Analysis reported last week that U.S. real (inflation-adjusted) gross domestic product (GDP), a measure of all goods and services produced, grew in the second quarter at an estimated annual rate of 2.8%. This surpassed economists' consensus projection of 2.1% and was an increase from the 1.4% rate reported for the first quarter. Categories contributing to growth in Q2 included nonresidential fixed investment, private inventory investment, and consumer spending; strength in the latter two categories particularly drove the accelerated growth from the first quarter.

Noted Inflation Measure Holds Steady in June: According to the Personal Consumption Expenditures (PCE) price index, considered the Federal Reserve's preferred inflation gauge, the rate of price increases across U.S. consumer goods and services held relatively steady in June. The report, released last week by The U.S. Bureau of Economic Analysis, indicated that prices rose at a 2.5% rate in June compared to the prior year, a marginal deceleration from the 2.6% pace reported for May. On a "core" basis (excluding food and energy), the PCE price index rose at a 2.6% annual rate, comparable to the May result.

Home Sales Fall Again in June: Existing home sales fell in June for the fourth straight month, the National Association of Realtors (NAR) reported last week. Sales dropped 5.4% from the prior month to a seasonally adjusted annual rate of 3.89 million units, the lowest level since December 2023. Notwithstanding fewer sales, home prices continued rising, with the median sales price of $426,900 hitting an all-time high. The NAR also pointed out, however, that the inventory of homes for sale has grown, reaching a four-year high of 4.1 months of supply in June, which could stem further price increases and stir greater sales activity.

As of July 26, 2024 Week Quarter-To-Date Year-To-Date One-Year
MSCI All Country World -0.90% 0.27% 11.60% 16.33%
S&P 500 -0.82% 0.05% 15.35% 21.35%
Russell 2000 3.47% 10.42% 12.34% 15.85%
MSCI EAFE -0.95% 1.03% 6.43% 10.04%
MSCI Emerging Markets -1.56% -0.87% 6.55% 6.57%
FTSE NAREIT Equity 0.06% 5.57% 5.43% 8.80%
Bloomberg Commodity -1.46% -4.59% 0.32% -5.82%
Bloomberg U.S. Aggregate 0.27% 1.48% 0.76% 3.89%

U.S. Bureau of Economic Analysis 7/25/2024, Nat'l Assoc of Realtors 7/23/2024, Thomson Reuters 7/24/2024. 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.