The Dow Jones Industrial Average hit a new high as investors are starting to embrace the fact that some stocks outside of the technology, computer chips and artificial intelligence are moving higher. With consumer inflation declining 0.1% in June, investors jumped further into the stock market on hopes that the Federal Reserve will cut interest rates in September. Last week, the Dow Jones was up 1.8% and the smaller companies of the Russell 2000 Index were up 6%.
Economic reports from last week came back mixed:
•Consumer Credit - higher than expectation
•Small Business Optimism - lower than expectation
•Inflation (Consumer) - lower than expectation
•Inflation (Producer) - higher than expectation
•Consumer Sentiment - lower than expectation
•Jobless Claims - lower than expectation
This week, investors will look for guidance from economic reports like Manufacturing, Retail Sales, Housing, and Jobless Claims.
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