Is Big Tech’s dominance over?
Surging tech stocks drove returns during the pandemic, but rising interest rates may pressure their earnings.
Last week’s economic data were mostly positive. Jobs grew by far more than expected for July — finally pushing payrolls past the pre-Covid peak — and the unemployment rate fell to 3.5 percent, matching the pre-Covid trough. Additionally, the ISM surveys signaled growth in manufacturing and services (with growth in services surprisingly accelerating) and provided evidence of both healing supply chains and slowing input price growth. In total, the data show little evidence that the economy is in recession today and increase the odds of the Fed moving forward with plans to institute another large interest rate hike next month.
View our informative commentary on the economy and financial markets – and find out what we’re watching for the week ahead:
NFM-9898AO.7