Stock market news

U.S. equities finished higher Tuesday, following a sizable rally on Monday. There were no major data announcements today, keeping the market's focus on the Fed, with stocks enduring a wide swing over the previous few trading days as investors have attempted to square the strong economy with the Fed's future policy shift to address higher inflation.  Consistent with the modest move in the broad indexes, sectors traded in a tight band, with consumer discretionary and energy leading today while 10-year rates were little changed, hovering just below 1.50%. Overall, it was a quiet day as market's catch their breath and look ahead to PMI and labor-market data later this week. 

The stock market has been treading water lately, finishing last week nearly flat since April, with modest oscillations along the way. It's not for a lack of data to chew on, however. Last week, the latest Federal Reserve meeting was squarely in the spotlight as investors analyzed the central bank's commentary and its updated expectations for future shifts in monetary-policy stimulus. This meeting was particularly noteworthy since it came on the heels of the most recent inflation reading, which showed that core consumer prices are rising at their fastest clip in 20 years¹.  The Fed raised its inflation expectations and revealed a slightly (emphasis on slightly) more hawkish tilt toward 2023 rate hikes.

^{Source: 1. Bloomberg} 

The Quarterly Market Outlook offers our perspective on recent activity in the capital markets. The Edward Jones Investment Policy Committee offers its viewpoints on the U.S. economy, stocks, the bond market, international markets and asset classes, as well as a special topic of interest to investors each quarter.

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