Chart of the Day
The Nasdaq has risen by over 5% in the past month, and the S&P 500 by 2%, which means they have generally outperformed much smaller rises or even outright falls in other advanced economy equity markets. That outperformance is because tech stocks have been doing better lately, and tech stocks make up a larger share of the S&P 500 than they do the other advanced economy indices.
Macro
Dallas Fed manufacturing sector survey fell in June and suggests the peak may be in for the national manufacturing indices.
In Japan, the unemployment rate rose to 3.0% in May – still extraordinarily low by advanced economy standards.
Generally, the economic surprise indices have been weakening lately.
Markets
It was a strong day for the main cryptos yesterday. Bitcoin is currently up by 8.1% in the past week, but still down by 4.2% in the past month. Ethereum is still down by 12.2% in the past month.
The EV stocks are on the move again, with Nio doing especially well this past month.
The semiconductor stocks have been putting in mixed performances, with Nvidia doing especially well.
The outperformance of tech stocks means the Russell 2000 has underperformed the Nasdaq over the past week – will be interesting to see if the ratio drops to a 2021 low, which would go against the re-opening and fiscal policy is good for small companies trend.
Is the top in for inflation expectations?
That will likely depend on oil. Some softness yesterday, but lots of chatter about the possibility of $100 later this year.
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