Weekly Market & Economic News Recap (Week of June 26, 2023)

U.S. home prices posted first annual decline since 2012 in April. S&P CoreLogic Case-Shiller National Home Price Index fell 0.2%. (Wall Street Journal, June 27, 2023, https://www.wsj.com/articles/u-s-home-prices-posted-first-annual-decline-since-2012-in-april-a5d0bbdc?mod=economy_more_pos5)
Powell says Fed’s inflation fight could take years. After raising rates rapidly over the past year, officials aren’t sure how much higher and faster to lift them. (Wall Street Journal, June 28, 2023, https://www.wsj.com/articles/powell-other-central-bankers-face-uncertain-inflation-outlook-30bd34e5?mod=economy_more_pos4)
U.S. economy shows surprising vigor in first half of 2023. Layoffs remain historically low and the economy grew more briskly than estimated. (Wall Street Journal, June 29, 2023, https://www.wsj.com/articles/u-s-economy-shows-surprising-vigor-in-first-half-of-2023-1a8a32eb?mod=economy_more_pos2)
To fight stickier inflation, governments take aim at corporate profits. Decision makers increasingly agree that booming profit margins in some sectors may be complicating central banks’ battle against inflation. (Wall Street Journal, June 30, 2023, https://www.wsj.com/articles/to-fight-stickier-inflation-governments-take-aim-at-corporate-profits-7095528f?mod=economy_more_pos1)
China’s economy shows new signs of weakness. Manufacturing contracts for third straight month, prompting calls for more aggressive government support. (Wall Street Journal, June 30, 2023, https://www.wsj.com/articles/chinas-economy-shows-new-signs-of-weakness-c3316657?mod=economy_lead_pos3)
Supreme Court strikes down Biden’s student-loan forgiveness plan. Case pushes to the fore different views of executive power espoused by White House and Supreme Court. (Wall Street Journal, June 30, 2023, https://www.wsj.com/articles/supreme-court-strikes-down-bidens-student-loan-forgiveness-plan-54a1ca7?mod=economy_lead_pos2)
U.S. inflation, consumer spending growth cooled in May. Federal Reserve is still likely to consider July rate rise amid solid economy. (Wall Street Journal, June 30, 2023, https://www.wsj.com/articles/consumer-spending-personal-income-may-2023-4a3fb7de?mod=economy_lead_pos1)
America’s hot labor market fuels job growth in unexpected places. Payroll increase extends to building, home selling and automaking. (Wall Street Journal, June 30, 2023, https://www.wsj.com/articles/americas-hot-labor-market-fuels-job-growth-in-unexpected-places-6dc5c0c6?mod=economy_lead_story)
Economic optimism powers stocks’ robust first-half rally. The Nasdaq hasn’t started a year better through June since 1983. (Wall Street Journal, June 30, 2023, https://www.wsj.com/articles/global-stocks-markets-dow-news-06-30-2023-4a972a09?mod=markets_lead_pos4)
Treasury yields resume climb as investors bet on growth. Yields rebound in second quarter as strains from bank failures and debt-ceiling crisis ease. (Wall Street Journal, June 30, 2023, https://www.wsj.com/articles/treasury-yields-resume-climb-as-investors-bet-on-growth-5d157f69?mod=markets_lead_pos12)
Banks brace for more turmoil heading into the third quarter. Volatility has eased, but bank stocks remain sharply below where they stood before trio of failures. (Wall Street Journal, June 30, 2023, https://www.wsj.com/articles/banks-brace-for-more-turmoil-heading-into-the-third-quarter-72184a00?mod=markets_lead_pos13)