top of page
  • J. J. Wenrich CFP®

Weekly Market Performance – Markets Finish Shortened Trading Week Lower

Markets Blog

Index Performance

U.S. and International Equities

Markets Lower

All major market indexes ended the shortened trading week lower. The real estate sector was the only sector that ended in the green despite commercial real estate risk and rising interest rates. Developed international equities detracted given concerns over the economic climate in Europe following weak economic reports from Germany. Communication services performed relatively well this week as Meta released Threads, a rival to Twitter, this week. The new platform received much fanfare as 70 million subscribers signed up for the service one day after launch.

Fixed Income Lower

The Bloomberg Aggregate Bond Index finished lower for the third straight week following Powell’s hawkish congressional testimony two weeks ago and this week’s FOMC minutes. High-yield credit ended the week in the red.

Default activity was elevated again in June and raised the high-yield bond and leveraged loan default rates to an all-new 2-year high. Specifically, five companies defaulted and seven completed a distressed exchange during the month totaling $4.8 billion in bonds ($2.1 billion default, $2.7 billion distressed exchange) and $4.3 billion in loans ($2.6 billion default, $1.7 billion distressed exchange). For context, a monthly average of $8.7 billion of bonds/loans have been affected by default/distressed exchange activity in 2023 versus $2.6 billion across 2021/22 and $4.1 billion post-Great Financial Crisis (2010-today).

Commodities Mixed

Energy prices ended mixed this week. The major metals (gold, silver, and copper) finished the week higher. Gold prices this week rebounded after reaching more than a three-month low two weeks ago, as traders are concerned about the metal’s prospects amid the Federal Reserve’s hawkish outlook.

Economic Weekly Roundup

June U.S. Manufacturing

June manufacturing activity shrank for the eighth consecutive month, as the ISM Manufacturing report posted its lowest reading since May 2020. Highlights from the June ISM Manufacturing report on Business: Future demand appears sluggish as new orders continue to decline. Employment in manufacturing declined in June as firms dial back demand for labor as the economy slows. Purchasing managers indicated they are in a buyers’ market as raw material prices fell in June. New export orders also declined in June as international economies, such as Germany, are weakening.

June Germany Manufacturing

Germany’s manufacturing sector contracted at the fastest rate in more than three years last month. Moreover, the decline also marked the fifth straight month of contraction. Consistently weaker demand is the main driver of the recent decrease in manufacturing output as traditional customers across Europe and the U.S. have reduced purchases in recent months. Investors should know that although this contraction signals greater worries for global demand and highlights issues within the manufacturing sector, firms have not yet begun large-scale cost-cutting measures.

Weekly and Monthly Unemployment Reports

Initial claims for the latest week came in above economists’ consensus expectation and higher than the prior week. Meanwhile, continuing claims, which are tallied with a one-week lag relative to initial filings, were below both the prior week’s levels and economists’ expectation. The labor market is expected to further loosen over the coming months as companies respond to slowing demand, partly driven by the Fed’s tighter monetary policy.

US government data showed employers added 209,000 jobs in June, below expectations but still a healthy pace of employment growth. The unemployment rate dipped to 3.6%.

Week Ahead

The following economic data is slated for the week ahead:

  • Monday: Wholesale inventories (May), consumer credit (May)

  • Tuesday: NFIB Small Business Index (Jun)

  • Wednesday: June Consumer Price Index, hourly earnings (Jun), average workweek (Jun)

  • Thursday: Weekly initial and continuing unemployment claims, producer price index (Jun), Treasury budget (Jun)

  • Friday: Export/import price index (Jun), Michigan sentiment (Jul)


This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors. To determine which investment(s) may be appropriate for you, please consult your financial professional prior to investing.

Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments. For more information on the risks associated with the strategies and product types discussed please visit

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

Investing involves risk including the loss of principal. Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price.

Bond yields are subject to change. Certain call or special redemption features may exist with could impact yield. High yield/junk bonds (grade BB or below) are not investment grade securities, and are subject to higher interest rate, credit, and liquidity risks than those graded BBB and above. They generally should be part of a diversified portfolio for sophisticated investors.

The fast price swings in commodities will result in significant volatility in an investor’s holdings. Commodities include increased risks, such as political, economic, and currency instability, and may not be suitable for all investors.

Unless otherwise stated LPL Financial and the third party persons and firms mentioned are not affiliates of each other and make no representation with respect to each other. Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

Securities and advisory services offered through LPL Financial, a registered investment advisor and broker-dealer. Member FINRA/SIPC.

For Public Use Tracking 1-05374785

Not Insured by FDIC/NCUA or Any Other Government Agency | Not Bank/Credit Union Deposits or Obligations |Not Bank/Credit Union Guaranteed | May Lose Value

For a complete list of descriptions of the indexes and economic terms referenced in this publication, please visit our website at


Commenting has been turned off.
bottom of page