Investors returned from the long weekend to something more jarring than the usual post-holiday lull: a burst of geopolitical theater that triggered the sharpest pullback in the S&P 500 since last October.
The Housing Math Problem
Rotation
Since the release of the Consumer Price Index (CPI) on July 11, the stock market has experienced a noticeable shift in leadership as the inflation rate continues to move toward the Fed’s target of 2%. Investors have been moving away from technology stocks, which have been the darlings of the market this year, towards small-cap and value stocks.
Getting Ahead of Ourselves
After rallying into the end of the year, both interest rates and the market took a little breather this week. The S&P 500 finished the week basically flat, while the yield on the U.S. 10-year Treasury finished at 2.40 percent. A quiet week as we head into earnings season.