Inflation cools and the labor market holds steady.
Taking a closer look…
- Inflation saw the largest one-month decrease since 2020 providing some relief for consumers. Energy prices continue to drive headline inflation. Meanwhile, core inflation benefited from cooling housing prices and lower costs for services like transportation.1
- Ongoing Middle East tensions have pushed oil prices higher.2 While oil prices have risen, they remain well below the levels they reached earlier in the year. While this situation bears watching, global stock markets have remained relatively stable for now.
- Manufacturing in the US continues to show signs of strength. A closely watched survey from the New York Federal Reserve showed growth in new orders and manufacturing employment. After several challenging years for the industry, the continued improvement suggests manufacturers remain willing to invest, increase production, and hire despite ongoing uncertainty.3
- US retail sales rose 0.2% in June, a modest but still positive increase. Despite subdued consumer sentiment and ongoing pressure on lower-income households, a resilient labor market continues to support consumer spending. Sales in sporting goods, musical instruments, and motor vehicles helped contribute to this increase.4
- Weekly jobless claims fell to 208,000, reinforcing signs of a stable labor market. Employers continue to hold on to workers, while persistent shortages in skilled professions, such as plumbers, mechanics, and nurses, suggest that labor demand remains healthy.5
Portfolio Manager, Strategic Advisers
"Diversification within US stocks may help investors weather bouts of subdued performance in certain parts of the market. For example, despite the prevalence of news headlines on artificial intelligence, growth stocks have had a quiet year so far. Diversification across value stocks and small-cap stocks has provided a helpful lift for investors."
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For over 30 years, Strategic Advisers and its dedicated group of seasoned investment professionals have helped clients reach their financial goals. Our team of portfolio managers, with specialized areas of focus in asset allocation and specific asset classes, along with our deep quantitative and fundamental research, drive our investment selection and risk management decisions on behalf of our clients.