Early this week Federal Reserve Chair, Jerome Powell, signaled the Fed is willing to “act as appropriate to sustain the expansion” due to the intensifying signals of a slowing economy and trade tensions rising. Before this announcement big tech was put in a bad spot as reports surfaced the DOJ and FTC will be partnering to combat the perceived dominance of these firms and potential abuses that come with this dominance. The week capped off with a lackluster Jobs Report for the month of May. Nonfarm payrolls rise was a mere 75,000 against 175,000 estimates, and wage growth also missed expectation. Despite these disappointments, the unemployment rate did stay at a 49-year low of 3.6%.
The U.S. large company stock index – measured by the S&P 500 – had its best weekly gain since November with wild swings in the tech sector due to the regulatory announcement. A heavy increase in anticipation of a Fed interest rate cut helped buoy stocks following last months losses. Overseas, equities in both developed and emerging economies similarly posted positive returns on the back of U.S. movement. Fixed income investments continue to show benefit by a deeply falling Treasury yield curve compared to a month prior. Alternatives have seen mixed results from the effects of falling interest rates on real estate and trade tension on commodities.
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