Pinder: Equities continue to power to all time highs

Market Trends & Economic Indicators - S&P 500 hitting 6,500 is meaningful, reflecting equity market resilience and the impact of the AI trade [1][2] - Inflation reports, particularly the PCE, are key for the Fed's decision-making and the equity market [3][4] - A potential Fed easing in September could catalyze broader sector rotation and small-cap outperformance [4] - Continued economic strength, as indicated by the GDP report, supports market broadening [7] Sector Performance & Investment Opportunities - Consumer discretionary is the best performing sector this month, followed closely by healthcare [6] - Approximately 75% of consumer discretionary stocks and 80% of financial stocks are trading above their 50-day moving average [7] - Consumer spending is front-loaded, positively impacting near-term earnings for consumer companies [8][9] - A steepening yield curve is a significant driver for the financial sector's rotation [10] Potential Risks & Considerations - Small caps are sensitive to lower interest rates, with 50% of their debt being floating [11] - The market is very data-dependent, relying on both inflation and jobs numbers [5]