Lily Molargik

Last week, the Fed voted unanimously to raise its benchmark rate by a quarter point, to a target range of 3.75% - 4%. This was the first rate hike since July 2023, sending the 10-year Treasury yield to 5%. While the decision wasn’t necessarily surprising, with markets expecting a move higher, it was still an unusual reversal. After a sequence of cuts in 2024 and 2025, the Fed has resumed hiking rates before reaching a neutral range. Investors expect one more hike later this year, and 16 of 18...

In August the markets stayed away from the back-to-school blues and ended the final full month of summer on a positive note. The month was generally positive even though there were still some geopolitical uncertainties and a mixed economic situation. Although job growth in the labour market declined, the unemployment rate fell very slightly, inflation decreased but was still fairly high, and corporate profits stayed strong, registering the highest growth rate since Q2 2021, which in turn...

July brought unexpected challenges for the markets, disrupting any hopes for a quiet summer. Investors faced a mixed bag of signals, with ongoing geopolitical uncertainty and inconsistent economic data keeping sentiment in check. The labor market added fewer jobs than expected, though the unemployment rate ticked lower. Inflation came in below expectations but remained somewhat elevated, with higher oil prices continuing to put pressure. Altogether, the data gave investors plenty to digest,...