The S&P 500 made it back-to-back up weeks as it closed Friday at 6,449. On Monday it was announced U.S./China tariff negotiations were extended, but the markets traded in a narrow range in anticipation of Tuesdays Consumer Price Index (CPI) numbers. Which, before Tuesdays open, came in at annualized rate of 2.7%, better than the expected 2.8%, while Julys 0.3% monthly rate matched the consensus number. As such, the S&P 500 gapped up at the open and continued to march higher with a daily gain of over 1% and closing at a new record high. On Wednesday the S&P 500 again gapped up at the open, and lifted on hopes of a rate cut at the next Fed meeting, the S&P 500 scored back-to-back record closes. Before Thursdays open the July Producer Price Index (PPI) number rose 0.9% on the month, much hotter than the 0.2% expectation. And then came a third straight day of gaps at the open, only this one was down. However, the markets clawed their way back into positive territory making it three in a row new records. On Friday the UMICH consumer sentiment posted a reading of 58.6%, down 5% from July for the first decrease in four months, and retail sales increased 0.5% for the month. Overall, the S&P 500 seemed to be taking a breather on Friday after those three new records and closed the week nearly 1% higher. From a technical perspective the S&P 500 has now made 18 all-time closing highs in 2025 and is on pace for notching four straight months of gains. And it is not just the S&P 500 hitting new records, but also the EFA International index, which hit a new all-time high on Friday dating back to 2008. As such, we appear to be in a Let the trend be our friend bullish territory. For next week we have light economic news, but the focus will be on Fed Chair Powells speech on Friday at its annual Jackson Hole meeting. For TSP TIPS the C fund matched the S&P 500 and also hit three new record highs this week. While usually remaining in the background, the F fund also hit a 52-week high on Wednesday. But not to be outdone, the I fund made two new record highs this week, including Friday, and remains at the top of the Performance Ranking leaderboard. As such we recommend no changes to our current investment mix.
The S&P 500 made it back-to-back up weeks as it closed Friday at 6,449. On Monday it was announced U.S./China tariff negotiations were extended, but the markets traded in a narrow range in anticipation of Tuesdays Consumer Price Index (CPI) numbers. Which, before Tuesdays open, came in at annualized rate of 2.7%, better than the expected 2.8%, while Julys 0.3% monthly rate matched the consensus number. As such, the S&P 500 gapped up at the open and continued to march higher with a daily gain of over 1% and closing at a new record high. On Wednesday the S&P 500 again gapped up at the open, and lifted on hopes of a rate cut at the next Fed meeting, the S&P 500 scored back-to-back record closes. Before Thursdays open the July Producer Price Index (PPI) number rose 0.9% on the month, much hotter than the 0.2% expectation. And then came a third straight day of gaps at the open, only this one was down. However, the markets clawed their way back into positive territory making it three in a row new records. On Friday the UMICH consumer sentiment posted a reading of 58.6%, down 5% from July for the first decrease in four months, and retail sales increased 0.5% for the month. Overall, the S&P 500 seemed to be taking a breather on Friday after those three new records and closed the week nearly 1% higher. From a technical perspective the S&P 500 has now made 18 all-time closing highs in 2025 and is on pace for notching four straight months of gains. And it is not just the S&P 500 hitting new records, but also the EFA International index, which hit a new all-time high on Friday dating back to 2008. As such, we appear to be in a Let the trend be our friend bullish territory. For next week we have light economic news, but the focus will be on Fed Chair Powells speech on Friday at its annual Jackson Hole meeting. For TSP TIPS the C fund matched the S&P 500 and also hit three new record highs this week. While usually remaining in the background, the F fund also hit a 52-week high on Wednesday. But not to be outdone, the I fund made two new record highs this week, including Friday, and remains at the top of the Performance Ranking leaderboard. As such we recommend no changes to our current investment mix.