The Pulse on the Economy and Capital Markets: May 30–June 3, 2022
June 8, 2022
At a glance
- Stronger than expected economic and job news had investors concerned that the Federal Reserve would have to be more aggressive in raising rates, leading US stocks and bonds lower.
- Crypto and commodities, specifically energy, industrial and consumer discretionary outperformed while bonds declined nearly a percent.
- The tech industry experienced fast growth during COVID, however, economic activity continues to slow resulting in increased layoffs and hiring freezes.
- Outside of the tech sector, the US economy has been relatively positive adding roughly 400,000 jobs in the month of May alone.
- As it relates to industry news, we’re reading about the SEC unveiling rules to prevent misleading ESG claims, mortgage demand falls to lowest level since 2018, big tech companies are hitting the brakes on hiring and lumber is the cheapest in seven months.
- SEC unveils rules to prevent misleading claims and enhance disclosures by ESG funds
- Mortgage demand falls to the lowest level since the end of 2018, even as interest rates ease a bit
- Tesla, Apple, Microsoft, Peloton: All of tech companies hitting the brakes on hiring
- Lumber is the cheapest in seven months as housing markets soften
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