With just under a month to go until Election Day, 2024 has not been a standard election season, as evidenced by assassination attempts on former President Trump and President Biden stepping down as the Democratic nominee.

The Fed delivered a 50 basis-point cut in rates with a clear message they are committed to full employment. The decision to cut rates was not unanimous, but Chairman Jerome Powell mustered some consensus among the hawks and doves on the Committee. Still, Federal Reserve Governor Michelle Bowman dissented, the first time a governor has dissented since 2005.

Increased volatility over the last several weeks has reshaped the equity market leaderboard. Capital has flowed out of technology and other cyclical areas of the market and into more defensive sectors.

With NVIDIA (NVDA) earnings now out of the way, investor focus turns to tomorrow’s personal consumption expenditures (PCE) report and next week’s busy economic calendar, including a highly anticipated August employment report and the Institute for Supply Management Purchasing Managers’ Index manufacturing and services survey data.

With July behind us, we conducted a deeper dive into fund flows over the last month. Flows measure the net movement of cash into and out of investment vehicles, such as mutual funds and exchange-traded funds (ETF). We analyzed flows to gain insight into investor demand and sentiment surrounding asset classes, sectors, and other classifications of markets.

LPL Research discusses some of the causes of the latest stock market selloff, including causes, perspective on the economic backdrop, bond market perspective, and technical analysis insights.

Expanding on our initial 2024 Outlook, “A Turning Point,” this midyear update offers fresh insights into the economic and market landscape, along with their potential impact on investment portfolios.

Stocks rose again in June as technology strength and artificial intelligence (AI) enthusiasm continued to power the major averages higher.

LPL Research highlights potential stock market implications of the other birthday America celebrates this month and the strong gains in the first half.