The S&P500 closed the week on a positive note as inflation data cooled. At the same time, markets could not ignore the sharp rise in infections. The S&P 500 reached all-time highs last week on four days.
There was some focus on Washington during the first half of the week, as the Senate approved a $1.2tn infrastructure bill and authorised $3.5tn in additional spending. These will now be considered by the House, with 9 Democrats opposing.
Additionally, CPI inflation was lower than expected in July. The slowdown in consumer prices was positive news for markets and supports the views of central bankers and others who have deemed this year’s higher inflation numbers to be transitory.
The winner of the week was US T-Bonds with +1.49%. One Signal Xpert underperformed the S&P 500 by 0.25%.