Investment Week at a Glance
Stocks finished higher for the week. The Dow Jones Industrial Average rose 2.3%, the S&P 500 was up 1.7%, and the NASDAQ rose 1.6%. Foreign stocks (MSCI EAFE) were also up, rising 0.1%. Bond prices were down for the week, with the 10-year U.S. Treasury ending the week at 4.35%. (Data source: Wall Street Journal)
Unemployment Falls to 4.1%
The unemployment rate fell to 4.1% in June as reported last week. This was a surprise to markets, as the expected rate was 4.3%, and there were concerns about the labor market starting to crack. Although just one month, this data continues to support the economy, and the labor market remains strong despite all the noise. Equity markets moved higher on this report as the S&P 500 hit a new all-time high to head into the July 4th weekend. Yields rose as well and the probability of a July rate cut fell to less than 5% as the Fed will likely use this data point to show the strength of the economy and therefore no reason to cut rates in the upcoming meeting.
International Markets Continue Outperformance
In 12 of the past 15 years, U.S. Equity markets have outperformed international markets. However, this year has been different as the MSCI EAFE is now up 17.4% while the S&P 500 is up 6.8%. Some reasons for this in the 1st half of the year were expansionary fiscal policy in Germany as well as rate cuts by the European Central Bank. This has helped boost the outlook for the growth of European economies. Investors will pay close attention to how this plays out in the 2nd half as the U.S. economy will likely see rate cuts and possibly more pro-business legislation.
First Solar Stock Up 18% Last Week
First Solar stock rose by over 18% last week as new details emerged from the “One Big Beautiful Bill” about tax credits for solar energy. The bill that was signed ended up being more flexible than initially constructed which was a positive for the solar companies overall. Instead of a hard deadline of December 31, 2027, there is now a more gradual phaseout. Although a negative overall for the industry, the outcome was better than initially thought. (CNBC)
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Quiz
When did the first stock market open in the United States? (Scroll Down for Answer)
- 1776
- 1792
- 1813
- 1849
Answer:
2. 1792. On May 17th, 1792, the signing of the Buttonwood Agreement occurred. Just 16 years after the United States began, the first financial panic happened and rules for trading securities were needed. The agreement focused on 5 securities that were traded; today roughly 4,300 U.S. companies are publicly traded.
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