While markets were anticipating a hot headline CPI reading, the June CPI report showed even hotter-than-expected inflation, with core inflation most surprisingly exceeding expectations.

The June jobs report painted a picture of consistency and strength in the labor market.

Stock-bond correlations remained positive in 2Q22, as both equities and fixed income delivered negative returns through the end of the second quarter

As investors mull the increasing odds of a U.S. recession, data out last week confirmed a recent weakening in the economy.

On the heels of a 40-year high inflation print and decade high University of Michigan inflation expectations, the Fed voted to raise rates by 75bps at its June meeting.

Last Friday, the May CPI report showed that inflation, as measured by the Consumer Price Index (CPI), increased 8.6% y/y.

In an environment dominated by fears of recession or run away inflation, the May Jobs report offers investors some comfort that the economy can find a soft-landing path to avoid both.

As illustrated by the Flash PMIs, growth stayed resilient in May, as lackluster manufacturing prints were offset by a strong services showing.

Equity markets have seen a volatile start to the year, with the S&P 500 down 19% from its early January peak.

Last week, investors’ hopes for signs of cooling U.S. inflation were dashed as the April CPI report showed inflation still running hot.