US stocks ended the week mixed and relatively flat as the market took a breath from the July rally. The S&P 500 increased by 0.4% and the Dow fell by 0.1% for the week. Foreign markets were also relatively flat with the FTSE All World Ex US down 0.2% for the week. US crude sharply declined by 9.7% for the week ending at $89.01 per barrel, down from $98.62 the week prior. The yield on the 10-year Treasury jumped to 2.84% up from 2.64% the week prior, the increase was mainly driven by the better than expected jobs report on Friday.
US employers added 528,000 jobs in July, exceeding the 250,000 estimated. Job growth continues to be strong despite rising interest rates and slower economic growth. The unemployment rate fell to 3.5%, landing below the 3.6% forecast. Job openings fell to their lowest levels in nine months in June.
US manufacturing activity grew in July. While July marked the 26th consecutive month of growth, the pace of growth continues to slow.
Gas prices in the US have declined for seven straight weeks and are approaching a $4 average price per gallon.
The Bank of England raised its key interest rate by 0.50%, the largest increase in 25 years, and predicted the UK would fall into a recession this year.