Market Outlook
The S&P 500 witnessed a rather varied performance throughout the month of July. The month started with upward momentum from late June, before peaking around mid-July at approximately 5,680.
S&P 500 Futures
The latter half of July saw increased volatility, with the index dipping below 5,480. On the last day of the month, the S&P 500 had it’s best intraday performance in months after Federal Reserve chair Jerome Powell said an interest rate cut “could be on the table as soon as September,” if data on inflation and the labor market continued to improve.Gold also had a volatile performance in July, reaching upward resistance around $2,500 before correcting, only to show strength in the last two days of the month.
Gold Futures
Treasuries have also been on the move, as short-term rates are starting to price in a potential Fed cut in September. The yield of the 3-month Treasury is finally dropping after being steady at around 5.4% for the past year.
3-Month Treasury Yield Percentage
Rate cut expectations have also been affecting longer-term Treasuries. This can be seen in the long Treasury ETF, TLT, which we often use as a hedge. As long-term Treasury yields fall, the price of the TLT ETF rises. It seems to be trying to break out from its recent price range.
Long-Term Treasury ETF (TLT)
More By This Author:The Newsletter For July 2024The Logical-Invest Newsletter For June 2024 The Newsletter For April 2024
