Economic data included increases in ISM manufacturing and services indexes. The monthly employment situation report disappointed, with far slower growth than expected, although the unemployment rate also declined.

Economic data for the week included the U.S. Federal Reserve keeping interest rates on hold, U.S. GDP for Q2 growing at a pace slightly below trend, as well as moderate gains in personal income and spending, durable goods orders, and home prices. Consumer sentiment remained mixed.

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.

Economic data last week included recent month improvements in consumer and producer inflation, as well as consumer sentiment, tempered results in industrial production and retail sales, and a mixed bag of housing data. Based on flare-ups in the Middle East, a variety of economic data points have been prone to sharp back and forth reversals by month.

Economic data highlights last week included a slight decline in ISM services, although the metric stayed in solid expansion, along with a drop in existing home sales. The FOMC meeting minutes continued to show concern over the duration of the recent inflation rise.