MarketBites: Earnings Have Surprised In A Good Way
Portfolio Manager Commentary:
Stocks closed in the red on Tuesday as geopolitical tensions remained high between the U.S. and China. Additionally, the Federal Reserve signaled that it won't stop raising interest rates anytime soon.
House Speaker Nancy Pelosi became the highest-ranking American politician to visit Taiwan in 25 years. The move prompted China to announce missile tests and military drills encircling the island.
Treasury yields surged after Federal Reserve governors reiterated their intentions to continue to raise interest rates until month-over-month inflation sees a significant downtrend. It seems that the Federal Reserve is fighting the bond market, which is already pricing in rate cuts for next year.
Fresh economic data showed job openings in July declining to a nine-month low, a sign of moderating demand for labor. A weakness in the job market would be significant as it has been one of the few bright spots this year.
Chart of the Day:
As we move through August and September, investors may hear about the late summer swoons of years past. Here's how the market has performed, historically, during the two months.