- Markets
- Dow Jones Industrial Average +2.4%
- S&P 500 +2.5%
- Russell 2000 +3.7%
- NASDAQ +3.6%
All major U.S. equity markets finished the week higher on improving inflation data and a boost to big bank performance. The Consumer Price Index (CPI), the Federal Reserve’s “actual” inflation gauge, for June came in at 3%. This is a far cry from June 2022’s 9.1%. Core CPI, which is different from headline CPI (mentioned previously), remains high at 4.8% and the Fed is intent on returning both core and headline inflation to 2%. Big banks released earnings this week and posted outstanding numbers. JP Morgan posted record revenue in the second quarter of $41.3 billion. Blackrock, the world’s second largest asset manager, reported assets climbed $9.4 trillion during the second quarer. The earnings release fostered confidence in a banking system which recently faced turmoil amidst mid-tier bank failures. The combination of an improving inflation and positive big bank performance sent equity markets soaring.