Post by LCG Associates, Inc.

Weekly Market Update: U.S. equity markets posted modest weekly gains of about 0.7% across the S&P 500, NASDAQ, and Dow, though performance was volatile, with a midweek sell-off followed by a rebound late in the week. Despite the recovery, major indexes remain below the record highs reached in early June. In contrast, small-cap stocks significantly outperformed, with the Russell 2000 rising roughly 4% for the week to a record high, extending its strong year-to-date gain to approximately 19%. The Consumer Price Index indicated inflation of 4.2% in May, marking the highest level in over three years. While the annual rate increased, month-over-month inflation moderated slightly from April, with non-energy categories remaining relatively stable. Separately, the Producer Price Index showed wholesale inflation rising to a 6.5% annual rate, the highest since November 2022. The European Central Bank implemented its first rate increase since 2023, raised its inflation projections, and lowered its growth outlook. The widely anticipated quarter-point hike was driven by persistent inflation pressures, higher energy costs, and geopolitical risks stemming from the Middle East conflict. https://lnkd.in/dn_22Uh