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Aug 02, 2023

July 2023

Stocks continued their steady climb higher in July as the NASDAQ rose 4.1%, the Dow Jones Industrial Average advanced 3.4%, and the S&P 500 tacked on another 3.2%. The NASDAQ is up 37.7% on the year, the S&P 500 20.7%, and the Dow 8.6%. Emerging Markets was the top performer in July at 6.3%, and the Russell 2000 Small Caps index was right behind at 6.1%.

All 11 US stock sectors posted positive returns for the second consecutive month. A double-digit percentage increase in oil prices in July sent the Energy sector 7.8% higher, followed by Communication Services at 5.7% and Financials at 4.8%.

Inflation came in below 3% for the first time in over two years, while July’s Core Inflation reading was below 5% for the first time since November 2021. New and Existing Home Sales both fell in July, but Existing Home Prices went in the opposite direction. Brent and WTI crude oil both jumped over 10% higher MoM in July, forcing retail gas prices higher as well.

In stark contrast to last month, short and long-term US Treasury yields shot higher in July while the middle of the yield curve spectrum was largely unchanged. The 1-Month and 3-Month Treasury Bills increased by 24 and 12 basis points, respectively. The 10-Year and 20-Year both rose by 16 basis points, while the 30-Year notched 17 basis points higher. 2-Year, 3-Year, and 5-Year notes rose by no more than 5 basis points each, while the 1-Year fell by 3 bps.

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