At the July meeting, the U.S. Federal Reserve Open Market Committee voted to keep the Fed funds rate unchanged at the current range of 3.50-3.75%. The vote was 9-3, with dissents from Hammack, Kashkari, and Logan, all of whom preferred to raise rates by 0.25%.

In a light week for economic data, S&P services PMI continued to increase, while manufacturing data flattened out, although both remained plagued by higher inflation. New home sales reversed course and rose, although to a minimal degree.

Equities were mixed, with declines in the U.S. and minimal gains internationally, with offsetting views about AI and inflation implications of the Middle East war. Bonds fell back globally along with higher inflation expectations and movements in the dollar. Commodities rose broadly, led by another spike in oil prices.