Monday Charge

In a stark departure from the typical summer lull, the final week of July saw the markets in a frenzy, driven by a deluge of earnings reports, central-bank meetings, and pivotal labor-market data.

In a notable shift in market dynamics, equity markets have been undergoing a rotation, with small-cap stocks and value and cyclical sectors outperforming their mega-cap technology and growth counterparts.

Last week marked a significant period for the stock market as attention broadened from the evolving political landscape to notable shifts within the market itself. The anticipated rotation in market leadership, which had been one of the key predictions for 2024, began to materialize.

In the first half of 2024, U.S. equity markets experienced a notable upswing, with large-cap stocks leading the charge with a 15.3% gain. This surge was primarily driven by the burgeoning excitement around artificial intelligence (AI) and strong profit growth...

In a recent turn of events, the U.S. economy appears to be showing signs of cooling, as indicated by the latest ISM manufacturing and services reports. For June, both metrics slipped below the critical 50-mark, signaling contraction in both sectors.

In an otherwise tranquil week for the markets, the release of fresh inflation data and the first presidential debate captured the spotlight.