Weekly Market Report (10 July 23)

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News Last Week

The U.S. labor market is slowing down, with 209,000 jobs added in June, down from 306,000 in May.
Despite the slowing, these figures have exceeded initial predictions from the Federal Reserve and Wall Street.
Persistent labor demand is leading to reduced unemployment rate predictions for the end of 2023, particularly in service sectors affected by the pandemic.
Inflation rates are surpassing projections, with the Fed's Q4 2023 inflation forecast (excluding food and energy) revised up from 3.5% to 3.9%.
This revision suggests that we may see rate hikes in upcoming Federal Reserve meetings.
The future direction of monetary policy now depends on whether inflation will decelerate faster than the job market.
If inflation cools off adequately, the Fed could stop rate hikes; however, if it remains high, further hikes might be needed to strike a balance between employment and inflation.

Earnings season begins next week with reports from major financial institutions such as JPMorgan Chase, Wells Fargo, Citigroup, and BlackRock.
Companies from other sectors, including PepsiCo, Delta Air Lines, and UnitedHealth Group, will also be releasing their earnings reports.
The June Consumer Price Index (CPI), an indicator of inflation trends, is scheduled to be released on Wednesday.
The Producer Price Index (PPI), another key inflation measure, will be announced on Thursday.