Financial News and Portfolio Management Discussion through July 2nd

All the news you need to stay informed about what’s currently driving the market — courtesy of Raffa Wealth Management, LLC.

US stocks declined for the week as recession fears continue to push the market lower. The S&P 500 dropped 2.2% for the week and the Dow fell 1.3% for the week. Foreign markets also declined with the FTSE All World Ex US losing 1.8% for the week. US crude increased to $108.43 per barrel up from $107.62 the week prior. The yield on the 10-year Treasury fell to 2.90% down from 3.13% the week prior.

The PCE index, the Feds preferred inflation gauge, increased by 6.3% in May. The increase was the same as in April and lower than the record high rate of 6.6% in March.

US manufacturing activity slowed more than expected in June, with manufacturing PMI dropping to 53.0, down from 56.1 in May. June’s reading was the lowest since June 2020.

The Fed said it was more concerned about failing to get high inflation under control than about the possibility of raising rates too high and pushing the economy into a recession.

US consumer spending increased by 0.2% in May, the smallest increase of the year, as high inflation and elevated interest rates reduced spending.

The ECB said it would increase its key rate by 0.25% in July, to negative 0.25%, indicating it would gradually raise rates over the coming months, deviating from the global push towards faster increases.

There is no guarantee that any investment strategy, including those described here, will be successful. Any investment or investment strategy can lose money. Past performance does not guarantee or predict future results. You should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Raffa Wealth Management, LLC. This information was gathered from reliable sources but we cannot guarantee accuracy. Indexes do not reflect the fees associated with actual investments and such fees would reduce the performance illustrated.
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