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The S&P 500 ended the past week higher in the wake of positive inflation data.
The index had climbed 2.8% on a weekly basis as of press time Friday. Other major market indexes also showed an upward trajectory, with the Dow Jones rising 2.4% on the week.
The Nasdaq Composite climbed a whopping 4%. Google’s parent company Alphabet led gainers in the tech-dominated index. Shares of the search engine leader climbed this past week after the company announced the launch of its AI search engine assistant Bard in Europe and Brazil.
Annual consumer price index inflation in June was at its lowest level since March 2021, at 3%. The rate came below average economist estimates of 3.1% and marked a whole percentage point drop since May’s 4%.
Producer price index inflation data was also welcomed positively by investors. The Thursday report showed that both PPI and core PPI (which strips out volatile food and energy prices) rose by only 0.1% in June, below the analyst consensus of 0.2%.
The world of crypto was shaken this past week after a U.S. judge determined the sale of XRP tokens by Ripple Labs did not constitute an offer of investment contracts, as the Securities and Exchanges Commission had alleged in a lawsuit against the company. The SEC said Ripple engaged in unregistered sales of XRP, which the agency considers to be a security. This decision could set a precedent for other cryptocurrency companies facing similar legal challenges.
Positive earnings reports by some of the country’s major banks Friday were the cherry on top that investors needed to close a hopeful week for the markets.
Microsoft shares rose after a federal judge ruled in favor of the company in a lawsuit filed by the Federal Trade Commission. The FTC, which argues that Microsoft’s $69-billion acquisition of gaming giant Activision Blizzard will hurt fair competition across the video game industry, is appealing the decision.
Amazon stock surged after the company's two-day Prime Day event, the first day of which marked the company's largest single sales day ever. Amazon saw sales of approximately $12.1 billion in gross merchandise value over more than 375 million items.
What to watch
On Tuesday, the June retail sales report will show whether the positive macroeconomic news is being reflected in consumer spending across the country. Data from the real estate market will also add to the economic picture when June housing starts are released Wednesday; the existing home sales report drops Thursday.
Major banks and financial institutions will continue to report earnings in the coming week. Interactive Brokers will release its report on Monday. Bank of America, Morgan Stanley and the Charles Schwab Corp. report Tuesday. That day will also see earnings from defense giant Lockheed Martin Corp and pharmaceutical colossus Novartis AG.