Are you getting the best rate from your broker?
Compare your broker's rates now to find out if you can save money

Choose your broker below
Welcome to Dividend.com. Please help us personalize your experience.

Select the one that best describes you
Dividend logo

The market didn’t throw a temper tantrum based on what happened at last week’s G7 meeting, but the historic agreement between the U.S. and North Korea to denuclearize the Korean peninsula couldn’t lift the bullish spirit as the Fed signaled that there will be one more rate hike this year.

The Q2 earnings season is coming to an end, but we still saw some impressive corporate earnings reports this week, and most large-cap companies we cover posted better-than-expected EPS compared to last year. However, the news of core inflation reaching 2.2% rang the alarm bells that the Fed might not be able to tolerate inflation much longer and a rate hike was much anticipated on Wednesday.

However, the Fed sounded more hawkish and promised to hike rates four times in 2018 instead of three, and it further flattened the yield curve as the 2-year Treasury bond jumped to 2.57%.

In summary, President Trump’s initiative to reduce tensions with North Korea definitely stole the limelight, but the Fed’s decision to keep raising rates sets the direction of the economy this week and for months to come.

Be sure to check out our previous week’s edition here, in which investors focused on the fact that there are now more jobs than unemployed workers in the U.S.

To read the Full Story, Go Premium or Log In

Popular Articles

Premium American%20flag%20on%20american%20money
News

The Market Wrap for July 20: Fed Chair Powell Says Economy Is Doing Great

The market started the week with caution over escalating international tensions, but strong Q2...

News

Trending: Netflix Tumbles After Disappointing Subscriber Growth

Dividend.com analyzes the search patterns of our visitors each week. By sharing these trends with...

Premium Small%20boxes%20with%20portfolio%20options
News

Follow the Three C’s of Portfolio Development

Believe it or not, saving is the easy part about getting ready for retirement.

Designing a...