MarketBites: Consumer Confidence Hits Decade Low
Portfolio Manager Commentary:
It seems that the bear market bounce I've been talking about has run its course. The market sold off, led by technology companies. Retail stocks were also hit hard with Bath & Body Works losing 4%, while Home Depot, Lowe’s, and Macy’s declined more than 2%. The move comes after fresh US Consumer Confidence data came in at a decade low. Meanwhile, Federal Reserve governors continued to reassure the public that rising interest rates won't cause a recession. It is important to note that these predictions however are often times wrong. This is not because the Fed is run by incapable people, but rather the sheer complexity of predicting what a $20 trillion economy is going to do in the next couple of months. This is an impossible job!
Over in China, the government relaxed its Covid restrictions for inbound travelers, cutting their quarantine time upon arrival by half to seven days. The decision helped lift casino stocks.
Oil continued to rise for a third day as global output remains uncertain.
Chart of the Day:
Emerging markets are having the worst first-half performance since Russia's financial crisis in 1998. So far the emerging market index is down 17% this year.
Source: Bloomberg Terminal