The stock market is performing relatively better than the just about non-stop Republican predictions of doom and gloom would suggest.
“The S&P 500 rose 1.4 percent Friday, taking its gain for July to 9.1 percent, its best month since the first announcements about an effective Covid-19 vaccine helped send stocks nearly 11 percent higher in November 2020,” according to The New York Times. A key group of large companies reported stock gains, helping add to the overall improvements in the market. Stock prices for Apple, Microsoft, Amazon, and Alphabet all showed gains on Friday across the preceding week and the month as a whole. The Times also reported on an apparent expectation on investors’ part that the Federal Reserve would be at least potentially inclined towards easing up on its efforts to tamp down economic trends leading to inflation. Such efforts prominently depend on interest rate increases.
Data available as of Friday showed that high earnings were seen with companies throughout the stock market. “Of the 278 companies in the S&P 500 to report earnings so far, 209 have beaten analyst expectations, according to Howard Silverblatt, a senior index analyst at S&P Dow Jones Indices,” the Times explained. Stocks also went up in Europe in July by nearly 8 percent, per the reporting from the Times. There are broader economic issues still reflected by current financial circumstances — overall, no matter the rapid growth seen in July, the S&P 500 is lower than the value seen in January, and the July growth came after a fall of over 8 percent in June. Still, there’s no broad-based implosion.
Earlier this month, the news emerged that — according to one source, at least — U.S. job growth reached the point that all job losses sustained in connection to the onset of the COVID-19 pandemic were wiped away. “The nation has now recovered all the private sector jobs lost to the pandemic downturn, a little more than two years after it struck,” a July 8 report from the Associated Press stated. Overall unemployment — as that rapid addition of jobs to the economy suggests — remains low. As previously reported on this site, U.S. employers added 372,000 jobs last month, which the Associated Press referred to as “a surprisingly strong gain.” For the fourth month in a row, U.S. unemployment was at 3.6 percent in June, as recapped by the same source.
Recently, the House approved a major piece of new legislation boosting the U.S. tech industry and adding to the support for the economy from Democrats. Despite opposition from House GOP leaders, two dozen Republicans joined House Dems to support the measure, which would “subsidize domestic semiconductor manufacturing and invest billions in science and technology innovation,” as The Washington Post explains. Biden hailed the passage of the bill as poised to lower everyday costs for Americans. “Today, the House passed a bill that will make cars cheaper, appliances cheaper, and computers cheaper,” the president said Thursday. “It will lower the costs of every day goods. And, it will create high-paying manufacturing jobs across the country and strengthen U.S. leadership in the industries of the future at the same time.” Biden also cited the positive national security ramifications of increasing U.S. self-reliance in a critical economic area.