Interest Rates Starting to Bite

Financial stresses are on the rise

Highlights

• The “Magnificent Seven” have accounted for all of the S&P 500’s rise this year, but mixed tech earnings are weighing on stocks

• The Chicago Fed’s NAI was a study in flatness, a counterpoint to the strong forecasts for Q3 growth elsewhere

• Consumers have turned to credit cards to make up for declining income and a run-down in excess savings

• We expect the ECB to stand pat tomorrow, but will be alert to guidance on the balance sheet