Markets Resilient Amid Uncertainty as Inflation Pressures Return
U.S. equity markets continued their slow but steady summer climb, with the S&P 500 and NASDAQ both logging gains of around 1% for the week, marking two consecutive weeks of growth. The Dow Jones Industrial Average outpaced both benchmarks with a 1.8% gain, coming within 0.2% of its all-time high from December 2024. However, that milestone remains elusive for now, reflecting a broader trend of cautious optimism.
The market’s upward momentum this week came despite growing concerns over mixed inflation data. The Consumer Price Index (CPI) held steady at a 2.7% annual pace for July, while the Producer Price Index (PPI) surprised to the upside with a 3.3% year-over-year increase—its sharpest gain in five months. Businesses are clearly feeling pressure from input costs, though consumers have yet to bear the full brunt.
This inflation conundrum reflects the current Virgo season (Sun and Moon in Virgo), which tends to focus attention on details, precision, and correction. The Virgo Moon at 25° during Friday’s close underscores the market’s sensitivity to minute changes—whether in consumer confidence or producer prices. With Mercury, the planet ruling Virgo, placed in late Leo and preparing to ingress into Virgo next week, the tone is expected to shift from dramatic headlines to data-heavy, policy-driven narratives.
Consumer Data Flashes Mixed Signals as Fed Outlook Becomes Clearer
Keep reading with a 7-day free trial
Subscribe to Market Watching the Moon to keep reading this post and get 7 days of free access to the full post archives.