Week of 06/26-06/30 Second Quarter Ends, Inflation Shows Signs of Cooling

Stocks rebounded this week to the stock market highs for 2023 from last weeks prior pullback. Technology stocks led the market to near their 20-day moving averages, giving flash buy signals and posing for breakouts to their yearly highs. The Federal Reserve inflation gauge showed core prices better than expected results in May. This fueled the existing bullish sentiment created after the pause on rate hikes and last month's economic reports. Tougher restrictions of chip manufacturing were reviewed by the Biden administration and would affect 10% of Nvidia's revenue as well as other companies in the sector. The news sent NVDA stock down, but recover shortly after with little change on the stock for the week. We continue to navigate the stock market through inflation and Friday marks the end of the second quarter of the year. The market has closed green for the first half of the year, but doubt remains if this will remain for the second half.