- U.S. stocks shook off a disappointing second quarter GDP print with the S&P 500 Index rising 4.3% over the week. To a degree, bad news was interpreted as positive news for equities as it could allow for a lower terminal federal (fed) funds rate.
- Index strength was broad-based. Within the S&P 500 Index, energy was the top performing sector following rising oil prices. Interest-rates sensitive sectors (ex. utilities, real estate) also performed well – benefitting from lower yields. While still positive, the bottom performing sectors included consumer staples and healthcare.
- Corporate earnings reports have been mixed. A disappointing update from Walmart brought down sentiment after it lowered guidance due to reduced consumer spending. Many of the major tech platform businesses also reported last week. While most are experiencing slower growth, the market reacted positively in many cases to better-than-feared results.
- Growth shares generally led value shares while small-caps largely outpaced large-caps (except in growth).
- Value stocks continue to have a sizeable lead versus growth stocks year-to-date, while large-caps continue to outpace small-caps.
