Weekly Market Update 7/30/2021

By July 30, 2021 No Comments

The path of least resistance for markets continues to be higher, as stocks registered their sixth consecutive month of gains on the back of a strong Q2 earnings season and continued fiscal and monetary tailwinds.  Yesterday’s US GDP miss for the second quarter, 6.5% annualized rate versus 8.5% consensus expectation, was largely embraced by markets as similar to recent jobs data misses, slower than expected growth could potentially delay the nervously anticipated taper and Fed funds rate hike decisions and timelines.  Fed chair Jerome Powell did little to dispel this notion during Wednesday’s FOMC meeting announcements, as while he acknowledged that inflationary pressures could surprise to the upside, he stressed that “substantial further progress” was still needed and the committee voted unanimously not to change the policy rate.

The delta variant remains a major focus for US economy, rebounding from its shortest recession in history (per National Bureau of Economic Research), however, reopening momentum has largely remained intact.

Infrastructure Bill Building Momentum

On the fiscal side, the Senate has made progress this week on an infrastructure bill, but it’s path through the House is very uncertain, as is how Congress will opt to pay for it as it relates to tax policy.  

Next week, there will be multiple manufacturing reports, as well as the July employment figures, and investors will be looking for reopening trends to continue.


Ian G. Browning, CFA Director, Investment Strategies & Shareholder
Peter E. Simmons, JD | President & CEO


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