This week, Federal Reserve (Fed) Chair Jerome Powell will give his semiannual report on the economy to Congress, as markets will be looking for any clues about the Fed slowing its asset purchases and the Fed’s stance on additional fiscal stimulus. Second-quarter earnings reports begin this week and I expect overall corporate profits to be strong, adding support to an equity market that is reaching all-time highs.
The markets are in a wait-and-see situation for the remainder of the summer as they await further information on what monetary and fiscal stimulus will look like in 2022. With more information on the path ahead, market momentum will likely follow the path of least resistance, which is currently higher.
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