1. S&P 500 rose nearly 1.5% last week; tech continuing to lead. 2. Recent housing data suggests a slowdown might be imminent. 3. Fed independence emphasized amid political pressures; rate cuts unlikely in July. 4. Economic indicators show slippage; rising layoffs expected. 5. Tariff agreements with Japan positively influence market sentiment.
While the S&P 500 is rising, economic indicators suggest potential slowdowns, limiting bullish impact. Historically, easing monetary policy has supported equities, but market sentiment now shows caution due to rising layoffs and housing weakness.
Economic indicators like new home sales decline and layoffs are critical for forecasting S&P 500 movements. These factors are uniquely pertinent given their direct influence on consumer spending.
Near-term market reactions will reflect potential Fed actions in September. Housing and economic data might shift sentiment significantly as these factors evolve.