Rate-cutting playbook: Investment strategies for offense and defense
This week’s macro data pushed large-cap equities to their best performance streak in over a month.
The S&P 500 is up +3.7% so far this week, which if it holds would be the best weekly performance since November. It’s been a broad rally this week. Small caps (Solactive 2000, +2.7%) are up, and mega caps (“Magnificent 7,” +6.1%) have outperformed.
Performance was driven by a weeklong run of favorable data across producer prices, consumer prices, retail sales and jobless claims. This has helped quell market slowdown fears sparked by the July Jobs Report. Prices were in line with or lower than Street expectations, initial claims (those applying for unemployment insurance) were lower, and the control measure of retail…
