- In a switch from last week, U.S. stocks gained ground as optimism mounted that the Federal Reserve could quell inflation and navigate a soft landing without inducing a recession. The gains brought the S&P 500 Index out of a bear market but is still around 17.5% lower on the year.
- Within the S&P 500, sectors were mixed. Communication services, consumer discretionary, and information technology outperformed and lessened their year-to-date negative returns. Energy and utilities lagged.
- Several companies had notable news to report. Shell anticipates strong second-quarter earnings around $1 billion because of record fuel prices while Ford reported a 32% increase in U.S. sales in June due to pent-up demand and a brand-new electric truck. American Airlines mistakenly dropped thousands of future flights because of a computer glitch and seeks to redeem this error by paying pilots triple their normal wages to work these flights, while airline industry tensions remain elevated.
- Small-cap stocks outpaced large-caps last week and growth beat value. These two themes reduced the disparity between market-caps and styles for the year as small-cap and growth stocks lag the most.
