Weekly Market Highlights 
Key Economic Trends from June 23 – June 29

Analysis, Fintech, Halal Investment, Market Analyses, Market News, Stock Investing |

Assalamu Alaykum,

Here’s a quick recap of what happened in the US stock market last week. From major index movements to key economic events, stay informed about the trends that matter to halal investors like you.

US Markets: All-Time Highs on Trade Optimism and Fed Support

  • Stocks surged as easing Middle East tensions, dovish Fed commentary, and progress on trade deals with China lifted investor sentiment.
  • The S&P 500 (+3.44%) and Nasdaq (+4.25%) closed at record highs, while the Dow, S&P MidCap 400, and Russell 2000 each rose over 2.5%.
  • Momentum was fueled by a signed US-China trade agreement and signals of more deals nearing completion.

Inflation: Slight Uptick in Fed’s Preferred Gauge

  • Core PCE rose 0.2% MoM and 2.7% YoY in May—slightly above estimates and April’s readings—indicating a modest inflationary uptick.
  • Headline PCE met expectations at 0.1% MoM and 2.3% YoY, while personal income and spending both declined, against forecasts for increases.
  • Despite this, inflation expectations for the year ahead dropped sharply from 6.6% to 5%, per University of Michigan data.

Economic Activity: Business Growth Slows, Costs Rise

  • S&P Global’s Flash Composite PMI slipped to 52.8 in June from 53.0, showing slightly slower but continued expansion.
  • Manufacturing output rose for the first time since February, offsetting a services sector slowdown, but tariff-driven cost inflation surged, hitting the second-highest level of 2023.
  • Outlook remains uncertain due to rising inflation despite ongoing growth, according to S&P Global.

The image presents a snapshot of the weekly movements among Halal-compliant U.S. stocks, spotlighting the top performers and decliners.

Top gainer: Ambarella soared with a 30.05% increase, standing out prominently in the market.
Other notable risers: Samsara and PagerDuty also made significant gains of 14.49% and 13.18%, respectively.
Biggest decliner: Equinix dropped by 11.78%, leading the list of the week’s underperformers.

These shifts suggest heightened investor interest in specific tech and software firms, while others may be facing short-term challenges.

Investment and Housing: Mixed Signals

  • Durable goods orders surged 16.4% in May, the fastest pace in 11 years, led by commercial aircraft bookings.
  • Business investment rebounded, with core orders rising 1.7% after April’s decline.
  • Existing home sales rose 0.8%, beating expectations, but remained the weakest May since 2009, while new home sales fell 13.7% to the lowest level since October.

Bonds: Yields Fall on Dovish Fed and Weak Data

  • Treasury yields fell, boosting returns, as Fed officials signalled openness to rate cuts and economic data softened.
  • Rate cut odds for July increased from 14.5% to 19%, though most expect the Fed to hold rates steady.
  • Credit markets remained steady, supported by improving sentiment.

Key Takeaways & Market Outlook

  • S&P 500 and Nasdaq hit record highs on dovish Fed and trade deal progress.
  • Inflation rose slightly, but expectations dropped, easing pressure.
  • Durable goods rebounded, while housing softened, reflecting mixed economic momentum.

Word of the Week

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