More signs the Fed might stop hikes
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Cooling inflation
The U.S. personal consumption expenditures price index rose just 3% year-over-year in June, and 0.2% from a month ago. Stripping out food and energy prices, core PCE was 4.1%, the lowest annual increase since September 2021, and rose 0.2% from May. The Federal Reserve follows the PCE closely because it tracks how people spend their money, instead of just how much goods cost.
Winning week for U.S. stocks
U.S. stocks rose Friday, giving all major indexes a winning week on the back of positive economic data. The pan-European Stoxx 600 index fell 0.2%. Meanwhile, Germany's gross domestic product stagnated in the second quarter, according to flash estimates, but France's GDP grew by 0.5%, easily beating the expected 0.1%.
Google's feeling lucky
Alphabet shares jumped 10% last week to hit $132.58, its highest in more than a year, as investors grew bullish on the stock after Alphabet reported better-than-expected earnings for the second quarter. Alphabet's report showed that the company could still keep Google as the leader in the search business despite challenges posed by generative artificial intelligence chatbots.
Looser YCC, tighter monetary policy?
The Bank of Japan announced Friday it will offer to purchase 10-year Japanese government bonds at 1%. That is, the bank's effectively loosening its yield curve control by expanding its tolerance range for 10-year JGB yields by a further 50 basis points. Analysts think the bank might be preparing to tighten monetary policy — and remove yield curve control eventually.
[PRO] Jobs, Apple and Amazon
What's next after the Dow Jones Industrial Average's historic 13-day run of gains? That depends on the July jobs report, out Friday, and earnings reports from Big Tech companies Apple and Amazon. CNBC Pro's Sarah Min breaks down what analysts are expecting from those data points releasing this week.
Source: CNBC
