S&P 500 rises after better-than-expected economic data

As recent economic activity data were better than expected and investors generally expected today's CPI data to be soft, driven by a rebound in risks across the board, the S&P 500 index rose 0.7% to close above 4,400 points. As oil prices exceeded the 100-day moving average Line, the index was mainly led by the energy sector. China’s data also showed rare better-than-expected results, with new RMB loans in June (3.2 trillion vs. 2.25 trillion expected), incremental social financing (4.22 trillion vs. 3.0 trillion expected) and M2 data. (year-on-year growth of 11.3% vs. expected 10%) are both much higher than expected.

Still, with bond yields repricing higher and the SPX yield relative to the 3-month Treasury note at its lowest level since the dot-com era, valuations could remain a continuing headwind for stocks even if the economy manages to achieve a full soft landing.

#S&P500 #CPI数据